Dubai, United Arab Emirates - 9, December 2023 – At the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in Dubai, the International Islamic Trade Finance Corporation (ITFC), a member of the Islamic Development Bank Group hosted a side event titled "Sustainable Synergy: Islamic Finance and Carbon Credits in a Green Economy
Moderated by Cornelia Meyer, CEO of Meyer Resources, the event featured keynote presentations from Eng. Hani Salem Sonbol, CEO of ITFC and Acting CEO of ICD, Mr. Scott Levy, CEO of Bedford Row Capital, Ms. Luma Saqqaf, CEO of Ajyal Sustainability Consulting, and Professor Lisa Wilson, CEO of XTCC.
Islamic finance, rooted in ethical and sustainable principles, offers a compelling framework for financing climate action. Key characteristics such as risk-sharing, asset-backed transactions, and adherence to environmental and social responsibility align seamlessly with the objectives of a green economy.
Carbon credits, representing verified emissions reductions, can serve as valuable assets within Islamic finance instruments. By incorporating carbon credits into financial products, IsDB aims to incentivize climate-friendly investments and accelerate the transition to a low-carbon economy.
Embracing environmental sustainability has become a critical imperative for businesses and financial institutions worldwide. Islamic finance, with its emphasis on ethical and responsible investing, is uniquely positioned to contribute to this movement by fostering green financing and carbon credit trading. By identifying and promoting Shariah-compliant opportunities in these areas, Islamic finance can play a pivotal role in advancing sustainable development.
Eng. Hani Salem Sonbol, CEO of ITFC and Acting CEO of ICD, underscored that the event is timely and essential that will provide valuable insights and actionable strategies for achieving a sustainable future. He also added that overcoming the challenges associated with integrating Islamic finance and carbon credit projects requires a multifaceted approach, with the participation of all private actors and stakeholders.
The ITFC’s COP28 side event is an important step towards unlocking the synergies between Islamic finance and carbon credits, paving the way for a sustainable and prosperous future for all.