Islamic finance for green initiatives: An unfulfilled potential
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Analysts see a clear affinity between Shariah-compliant financing and saving the planet for future generations but this has translated into precious few on-ground programmes.
Islamic financing solutions for sustainability have largely focused on sukuk issuance and the future, say analysts, lies in growth economies in the Islamic world adopting green financing for infrastructure development.
“We have seen the most activity in terms of discussion, debate and policy papers around the concept of green sukuk, and within these discussions a realisation that Islamic finance must play a part in developing green and climate-based finance and investment solutions to help meet Nationally Determined Contribution (NDC) goals and country-based climate and environmental objectives,” Sean Kidney, CEO of the UK-based non-profit Climate Bonds, told Salaam Gateway.
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Shalini Seth, White Paper Media