Sun rises on the role of Islamic financial institutions in green transformation
Photo: Sun rises behind solar panels. Diyana Dimitrova/Shutterstock
Key players in the global Islamic economy are dedicating larger proportions of new funding to climate change mitigation initiatives even as regulatory and policy frameworks evolve to keep pace with emerging requirements.
“I expect to see an increase over time in support from Islamic finance for the green transition. The Islamic Development Bank (IDB) has become much more active in financing climate change mitigation and adaptation projects,” Blake Goud, CEO of UK-based think tank the Responsible Finance and Investment (RFI) Foundation told Salaam Gateway.
The Organisation of Islamic Cooperation’s (OIC) multilateral development bank IDB has channeled around $2.75 billion in financing to renewable energy projects and 6 percent of its operations have been allocated to climate change mitigating projects, according to a document from its research arm the Islamic Research and Training Institute (IRTI).
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Shalini Seth, White Paper Media