Islamic climate finance — a sustainable solution

Climate change stands as one of the most critical challenges of our era, demanding united efforts and creative solutions. As the world confronts its escalating risks, the urgency to develop innovative and inclusive financial systems has never been greater. Islamic finance, known for its global reach and its focus on supporting the real economy and sustainable initiatives, presents a distinctive approach to climate finance by aligning ethical investment principles with sustainable development goals. According to the Islamic Finance Development Report 2024 issued by the London Stock Exchange Group, more than 1,981 institutions now offer Islamic financial services, managing assets worth $4.9 trillion, with a presence spanning 120 countries. Islamic climate finance is gaining recognition as an effective tool in the global effort to address and adapt to the challenges of climate change.