As Islamic Development Bank Group’s international trade financing arm, the International Islamic Trade Finance Corporation (ITFC) plans to focus attention on its efforts to mobilize and deploy financing for climate sensitive projects that support its member countries’ efforts to reduce GHG emissions, improve efficiency, and increase their resilience as stated in their national commitments within the framework of the Paris Agreement.
This is part of the ITFC’s broader effort to expand sustainable trade solutions offerings: trade finance and trade development opportunities. By diversifying ITFC's portfolio and increase its developmental impact through targeted financing, trade related technical assistance, capacity building, and advisory services for OIC member countries and beyond. To advance the role of trade financing for climate action, ITFC’s work is built on three main pillars, namely:
- Provide increased access to sustainable trade finance to its members to enhance the climate resilience of local communities leading to better livelihoods in increased agriculture production, food security, and small business development. These efforts will build on projects in cotton, coffee, and others traded agriculture commodities by embedding climate smart agriculture practices in the value chains of traded goods financed by ITFC.
- Support the deployment of new technologies to expand the use of electronic trade transactions, traceability with blockchain, and efforts to decarbonize trade activities with financing, technical assistance and advisory services incorporating green, resilient, and sustainable practices among ITFC’s clients.
- Strengthen its climate and other ESG internal policies and practices to reinforce environmental and social sustainability imperatives in its development impact tracking and monitoring and to provide periodic non-financial reporting on the impact of its trade finance and trade development activities including relevant KPIs and portfolio lending targets contributing to green, resilient, and sustainable activities.