A Watershed Moment for Islamic Finance and Climate Change?

Malaysia has taken the lead on promoting climate-risk readiness among financial institutionsOther OIC countries with Islamic finance sectors have also seen development of green sukuk and frameworks for sustainable financeAmidst the disruption created by the coronavirus pandemic, there is a renewed push to acknowledge and address climate-related financial risks facing the financial sector, including within Islamic finance

Bank Negara Malaysia Assistant Governor Fraziali Ismail announced at a Malaysia Showcase during NYC Climate Week 2020 that approximately 11.7% of Malaysian financial institutions assets are potentially exposed to climate change. Later, the Joint Committee on Climate Change (JC3) released a progress update laying out its work with Malaysian financial institution...