As Multilaterals Expand Their Climate Finance Across OIC Countries, Islamic Financial Institutions can Find Opportunity

Lack of data on where climate finance could align with Islamic finance has inhibited a focus on climate finance outside of major Islamic finance marketsThe first set of disclosures that include data from the Islamic Development Bank offers a glimpse of where climate finance could enhance Islamic financeThe shortfall in global climate finance below what is needed to meet Paris Agreement targets and make countries more resilient to the impacts of climate change opens up new opportunities for targeted financing by Islamic banks

The Islamic Development Bank has for the first time been included among the multilateral development banks in a report quantifying their climate financing activities. The latest Joint Report on MDB Climate Finance provides an in...