Greenpeace on the power of Islamic finance

Unlocking Islamic finance for climate action

Worth more than $2.5 trillion, Islamic finance has the potential to fill the climate action funding gap with investments that are ethical and sustainable. So why is this resource still largely untapped?

In the first of a new series of AFF member-led sessions, Greenpeace-MENA will focus on the power of Islamic finance to catalyse the climate fight. The Islamic finance industry presents a unique set of ethical principles that could drive transformative change in climate finance.

It prohibits investments in sectors considered "sinful" in Islam — such as alcohol, tobacco, pornography, and certain arms manufacturing. It also prohibits the charging of interest (riba) and the engagement in transactions involving uncertainty and gambling (gharar). These principles result in the creation of financial products and legal structures that specifically align to Islamic ethical and sustainable practices and have the potential to reshape climate finance by directing investments towards environmentally responsible initiatives while avoiding industries that are generally considered harmful to people and our planet.

But despite this potential, Islamic finance remains underutilised in efforts to mitigate and adapt to climate change. And that's something Greenpeace-MENA, as part of the Ummah for Earth Alliance, is committed to changing. In this session, experts from Greenpeace and other organizations focused on climate action will look at ways we can unlock the power of Islamic finance and engage Islamic financial institutions, scholars, and stakeholders to redirect financial resources towards green solutions.

Join the discussion and find out how your organization can harness Islamic finance to further the cause of environmental protection and sustainability.

Speakers

• György Dallos
  Senior campaign strategist, Global Climate & Energy, Greenpeace International
• Omar Shaikh
  Managing director, Global Ethical Finance Initiative (GEFI)
• Dr. Hanaa Al Banna
  MENA executive director, CSR Accreditation
• Tariq Al-Olaimy
  Co-founder and managing director, 3BL Associates

Notes

This event is being hosted by the Arab Foundations Forum (AFF). It takes place 16 -17:30 EEST (9-10.30 EDT) on May 8. Register here.

More information: nagiw@arabfoundationsforum.org