A type (subcategory) of SRI sukuk in which the proceeds are utilized only for the purpose of funding certain activities or transactions relating to the eligible “green” projects (broadly known as SRI projects). Green projects, by definition, are those that have no adverse impact on the environment.

These sukuk (green sukuk) are usually aligned with certain regulatory requirements in terms of transparency and disclosure requirements and operate under a pre-defined framework (for SRI). Other regional or global standards might also be used as a reference point, governing the issuance of these sukuk and the use of their proceeds.