A new cultural and financial model for the green economy:The use of shari’ah-compliant finance in a case study

The reduction of incentives caused the decrease of investments in the renewable energy sector in Italy. For this reason, it is necessary to rethink the funding techniques. With this work, we want study the incentive-dependency of an Italian case study in the wind energy sector in order to reach the grid-parity, using the Islamic Finance Sukuk instruments of the Shari’ah-compliant finance that prohibits interest rates as in conventional financial markets. Then we present the building cost thresholds necessary to achieve the grid-parity and we compare the results with those obtained using conventional finance, highlighting the importance of incentives and the applicability of the use of Sukuk for the sustainability of investments.