The Central Bank of the United Arab Emirates (CBUAE) launched a Roadmap for Islamic Sustainable Finance on Wednesday. The roadmap outlines comprehensive steps to advance sustainability in Islamic finance, including prudential standards, disclosure guidelines, market development initiatives, and capacity-building programmes. It sets a targeted timeline for the initiatives to be implemented.
The roadmap was developed in collaboration with several Islamic finance infrastructure bodies, including The Islamic Financial Services Board (IFSB), the General Council for Islamic Banks and Financial Institutions (CIBAFI), and the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
The Roadmap for Islamic Sustainable Finance was launched on Wednesday.
The roadmap outlines comprehensive steps to advance sustainability in Islamic finance, including prudential standards, disclosure guidelines, market development initiatives, and capacity-building programmes. It sets a targeted timeline for the initiatives to be implemented.
“This significant milestone to advance Islamic sustainable finance in line with sustainable development goals, came ahead of the 28th Conference of the Parties (COP 28) hosted in the United Arab Emirates,” the bank said in a statement Wednesday.
“This declaration issued by the Islamic Finance Infrastructure Organisations tends to foster Islamic sustainable finance globally, as it sets clear roadmap and objectives to support Islamic finance industry to integrate further sustainability considerations in their businesses and activities,” HE Khaled Mohamed Balama, Governor of the CBUAE. “The CBUAE is pleased to have supported in the success of these discussions as part of its commitment to promoting sustainability and keeping with the UAE’s vision of becoming an Islamic finance hub.”
The announcement comes after the CBUAE-sponsored series of Islamic finance-related events held jointly with the Islamic finance infrastructure organisations. The IFSB organised a global forum on sustainability-related risks and opportunities, while the CIBAFI event is more about empowering sustainable practices and climate action in Islamic finance. The AAOIFI event covered the integration of Maqasid Al Shariah and sustainable development goals into the decision-making process.
“We simply cannot meet our climate ambitions and keep 1.5C within reach without the active participation of all sectors, including Islamic finance,” said HE Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and COP28 President Designate. “Ensuring that sustainability is an integral part of all financial strategies is crucial to tackling climate change, and today’s launch is a welcome contribution to our call for stakeholders to develop solutions that fixes climate finance.”
“As the world gathers in Dubai for COP28, we need an “all of the above” approach that brings different efforts together, scales up our impact, and delivers on our climate ambitions.”
