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Monday, April 15, 2024

Launch Partners

Nature-related Islamic finance program announces new committee, sets yearly target of up to US$100 billion 

The Global Islamic Finance Program (GIFP) for Climate, Nature and Development, an initiative spearheaded by WWF International and Ajman University-Centre of Excellence in Islamic Finance (AU-CEIF), has announced its newly formed advisory committee and set a yearly target for funds it aims to mobilize.  

The GIFP aims to design a pathway to provide a blended finance solution that further mobilizes public and private Islamic capital to originate and fund bankable nature-based solutions, a statement read. 

The program seeks to address a nature financing gap in the Global South through Islamic funding, with its consortium members working together to mobilize funds for climate-resilient economic development in OIC member countries.   

The advisory committee, unveiled during the 28th Conference of the Parties of the United Nations Climate Change Conference, includes HSBC, Standard Chartered Bank, the Securities Commission Malaysia and Simmons & Simmons, along with WWF and AU-CEIF.  

The initial target size of funds to be mobilized has been set at US$1.5 billion, with a long-term goal of mobilizing between US$30 billion and US$100 billion of Islamic capital every year. The program is expected to be implemented beginning the fourth quarter of 2024.  

“Unique in its origin from the global South, the GIFP is pioneering in its approach to generating viable nature-based solutions for both mitigation and adaptation. It aims to galvanize both public and private Islamic financial resources, directing them into a diversified portfolio to support these initiatives,” Dr Karim Seghir, the chancellor of Ajman University, said. 

The GIFP was developed with consultation and insights from global Islamic finance stakeholders, including multilateral banks (notable the IsDB and Asian Development Bank), regulators, sovereign wealth funds, ministries, Islamic banks and non-banking Islamic financial institutions, Islamic trust bodies and Islamic finance research entities.  

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