On the sidelines of the 51st Annual Meetings of the Islamic Development Bank Group (IsDB Group) in Baku, an initiative to establish a Global Islamic Climate Finance Alliance (GICFA) has been launched, Report informs.
The new multilateral international platform aims to unite Islamic and climate capital markets, facilitating more effective mobilization of financial resources for environmental and climate projects.
The Alliance is expected to become a platform for strategic partnerships, the exchange of experiences and best practices, and interaction between investors, financial institutions, and project developers.
Furthermore, participants at the annual meetings of the IsDB Group called for strengthened cooperation to more fully utilize the potential of Islamic finance in supporting environmental initiatives, achieving the Sustainable Development Goals (SDGs), and financing the energy transition.
Experts emphasized that, despite the significant scale of the Islamic finance industry and its alignment with sustainable development principles, its contribution to financing green projects and the energy transition remains below its potential. During the discussions, existing barriers to interaction between investors, project developers, and implementers were highlighted, as well as the need for closer coordination among all stakeholders.
The results of the discussion were reflected in the Baku Communique, a strategic document that will outline further steps to expand the role of Islamic finance in strengthening climate resilience and supporting the global energy transition.
