Malaysia leads green finance advancement with world’s first RMB 200 million Climate Sukuk

Malaysia has achieved another global first in Islamic finance with the launch of the world’s first RMB 200 million Climate Sukuk, a landmark deal that fuses Shariah principles with green finance, digital tokenisation, and carbon credit monetisation. 

Jointly issued by Hong Kong-listed Unity Group Holdings International Ltd (Unity Group) and Tek Securities Limited under the Labuan IBFC framework, the sukuk was announced at the Global Islamic Finance Forum (GIFF) 2025 recently, reinforcing Malaysia’s ambition to position Labuan as the Global Hub for Digital Islamic Finance.

The issuance is backed by 40,400 tonnes of verified carbon credits derived from the Selangor Government’s Energy Efficiency Initiative: The Green Initiative Program, reflecting tangible carbon reduction outcomes through the deployment of Ultra High-Efficiency ESG Lighting.

Proceeds from the issuance will fund green infrastructure and low-carbon projects led by Synergy ESCO, including advanced ESG lighting installations under the Selangor Green Initiative for Strata Properties. The initiative aims to convert six million tubes and generate four million tonnes of carbon credits over the next decade.

Unity Group Chairman and CEO Mansfield Wong said the Climate Sukuk serves as a replicable model for sustainable investment and Environmental, Social, and Governance (ESG) integration.

“It sets a new standard for Islamic finance to drive climate action and this marks Unity Group’s shift from energy services to sustainable fintech provider, delivering both financial returns and measurable environmental value,” he added.

Unity Group also plans to expand its portfolio into other sustainability-driven ventures such as renewable energy and smart farming projects to further support Malaysia’s net-zero transition.

This milestone was highlighted by the visit of Prime Minister YAB Dato’ Seri Anwar Ibrahim, who toured the Unity Group booth at GIFF 2025 and kickstarted the initiative by signing a commemorative plaque.

This innovative bond represents a new generation of Shariah-compliant financial instruments aligned with the Government’s vision for a climate-focused and transparent financial ecosystem under Budget 2026.

Using Labuan IBFC’s strong framework to attract investment and drive sustainable, climate-resilient growth, the sukuk exemplifies how Islamic finance can support measurable environmental outcomes.

-END-