The increasing global emphasis on sustainable development and ethical investment practices has paved the way for innovative financial instruments that align with these principles. One such instrument is Sukuk, commonly referred to as Islamic bonds, which adhere to Shariah principles. Sukuk differs fundamentally from conventional bonds in that it represents ownership in a tangible asset, usufruct, or investment, and complies with Islamic law's prohibition of interest (riba) and unethical activities (haram) (Usmani, 2002). The convergence of Islamic finance and green investments has given rise to Green Sukuk, which finance projects with positive environmental impacts. This fusion not only offers Shariah-compliant investment opportunities but also addresses contemporary environmental challenges such as climate change and resource depletion (ElGamal, 2006). Islamic finance is grounded in ethical principles derived from Shariah law, emphasizing social justice, risk-sharing, and the avoidance of unethical practices. Sukuk, as an Islamic financial instrument, embodies these principles by ensuring that investments are asset-backed and involve profit-sharing arrangements rather than interest payments (Usmani, 2002). The historical roots of Sukuk can be traced back to early Islamic trade practices, where business transactions were conducted on the basis of mutual benefit and fairness (Wilson, 2004). Over time, Sukuk has evolved into a sophisticated financial tool, gaining acceptance in global financial markets and providing an alternative to conventional bonds for investors seeking ethical investment options (Jobst, 2007). The purpose of this study is to explore the potential of Sukuk instruments in fostering green investments within the Islamic bond market. The research will examine the unique characteristics of Sukuk, their alignment with Environmental, Social, and Governance (ESG) criteria, and their comparative advantages over conventional bonds.