Jeddah / Milan, 28 September 2021 – President of the Islamic Development Bank (IsDB) and Chairman of IsDB Group, H.E. Dr. Muhammad Al Jasser, has delivered a keynote address at the F20 Climate Solutions Forum.

In his opening remarks at the event convened under theme ‘Green Recovery, Sustainable Finance, Just Transition: Putting Words into Deeds‘, Dr. Al Jasser lauded the relevant governments, philanthropic, financial, and non-state actors for their exceptional efforts in trying to build back better and greener despite the devastating effects of the global pandemic.

The IsDB President enumerated the significant role of Islamic financing in ensuring compliance with Environmental, Social and Governance (ESG) aspects that are well embedded in the various business models.

The Islamic Development Bank raised EUR 1 billion of Green Sukuk (Islamic equivalent of bonds) in 2019 and a US$ 2.5 billion Sustainability Sukuk in 2021. These funds will be invested in green and resilient infrastructure that is expected to create millions of green jobs in the near future.

‘’In 2019, the IsDB made an ambitious commitment that by 2025 at least 35% of its operations will be in climate finance. This commitment involves green infrastructure investments, notably in renewable energy, climate-resilient agriculture, urban, water, and transport sectors,’’ Dr. Al Jasser added.

The president while noting the relevance of Islamic finance in climate action-oriented financing, stated Islamic financial solutions as an asset-backed, risk-sharing mechanisms with ethical underpinnings that are also subject to strict governance as per ESG considerations as well sustainable development goals.

A curtain raiser to the G20 summit, the Climate Solution Forum brings together global financial leaders, philanthropists, environmental and financial experts to establish dialogue on the solutions to the pressing climate conditions.