Preheat oven to 350 degrees Grease a 9x5-inch loaf pan with nonstick cooking spray and set aside.
In a medium bowl, whisk together flour, baking powder, baking soda, and salt. Set aside.
In a large bowl, combine the sugar and lime zest. Rub together with your fingers until fragrant. Add the eggs, coconut oil, lime juice, and vanilla extract. Stir together until smooth.
Add the dry ingredients and mix until just combined, don’t over mix. Gently fold in the shredded zucchini.
Pour the batter evenly into the prepared loaf pan. Bake until golden brown and a toothpick or cake tester comes out clean when inserted into the center of the loaf, about 50 to 60 minutes. Check early to be safe.
Remove the bread from the oven and let sit in pan for 10 minutes. Loosen with a bread knife around the edges and carefully remove the bread from the pan. Place on a wire cooling rack.
While the loaf is still a little warm, make the lime glaze. In a small bowl, whisk together the confectioners’ sugar and lime juice. Start with 1 tablespoon but add a little more until the glaze is pourable.
Place a baking tray or cutting board under the cooling rack to catch any drips. Spoon the glaze over the top of the bread, allowing it to drip down the sides. Sprinkle toasted coconut on top. Gently press the coconut into the glaze so it sticks. Cool completely, then slice and enjoy.