The Islamic Development Bank Institute (IsDBI), as the responsible entity for coordination of Islamic finance standard-setting bodies established by the Islamic Development Bank Group, is leading in advocacy and development of policy standards and guidelines that encourage uptake of climate financing and investments by institutions offering Islamic financial services (IIFS). These include efforts to produce regulatory and supervisory guidelines that will provide the enabling environment for IIFS to engage in climate action while providing the necessary purview to the authorities in maintaining stability in their financial systems.

The IsDBI, together with the Bank’s Resilience and Climate Action Department, has partnered with the United Nations Environment Programme Finance Initiative (UNEPFI) and CIBAFI to develop a policy and strategy document to increase climate action by Islamic Banks in the MENA region. The IsDBI also contributed to the development of CIBAFI’s Sustainability Guide for Islamic Financial Institutions4 through technical inputs from its staff as well as financial assistance through IsDBI’s Islamic finance grants program. 

In addition, the IsDB Institute is spearheading innovative solutions to enable IsDB member countries combat climate change with evidence-based policies and support. Together with its international partner ‘Global Partnership for Sustainable Development Data’ (The Global Partnership), the IsDB Institute provides solutions that enable MCs to comprehensively monitor, analyze and share data on water quantity and quality, biodiversity loss, and sustainable agricultural practices which are essential for environmental monitoring with data that feeds directly into evidence-based climate change policies and action. Through use of satellite imagery, up to date data is made available to national governments to inform agriculture, deforestation, and water security policies that impact the most marginalized.