Kuala Lumpur, Malaysia, 17 December 2025 — The Islamic Development Bank Center of Excellence in Kuala Lumpur (IsDB KLCoE) and the World Bank Inclusive Growth and Sustainable Finance Hub in Malaysia, successfully co-organized an Industry Engagement Session focused on the critical intersection of Islamic Finance and the Climate Agenda.

The session brought together more than 100 participants, attending both physically and virtually, comprising representatives from the Malaysian banking sector, development finance institutions, regulatory authorities, academia, and the insurance and capital markets. This high level of engagement underscores the escalating interest in leveraging Islamic finance to address climate-related risks and support the planetary health aspirations of the 13th Malaysia Plan 2026–2030 (13MP).

Discussions during the session were led by Mr. Syed Faiq Najeeb (Lead Islamic Finance Specialist, IsDB KLCoE) and Ms. Shahira Zaireen Johan Arief Jothi (Senior Financial Sector Specialist, World Bank Malaysia). The speakers presented the core objectives of the recently developed joint WB-IsDB report emphasizing:

• Instrument Innovation: The role of Green Sukuk and Shariah-compliant blended finance in funding climate resilience, while offering Takaful protection for vulnerable segments.
• Policy Alignment: How Islamic finance naturally aligns with the National Planetary Health Action Plan (NPHAP) within the 13MP framework.
• Market Realities: Addressing the practical challenges of climate risk management and the necessity of robust regulatory frameworks.

Participants shared views on opportunities and enabling conditions for aligning Islamic finance with the climate agenda, specifically regarding product innovation and risk management. The collaborative spirit was lauded by participants, who recognized the partnership between the IsDB, the World Bank, and Malaysian stakeholders as a vital catalyst for achieving the ambitious sustainability targets of the 13th Malaysia Plan