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KATHMANDU, DECEMBER 11
Addressing the climate emergency will require all the funding possible from as many diverse sources as possible.
Islamic climate finance instruments could help in Asia and in many other parts of the world. The latest Intergovernmental Panel on Climate Change (IPCC) reports sounded an alarm that without urgent climate action, many parts of Asia and the Pacific may become unlivable within the next three decades. This warning builds on recent climate-related events, such as this year's devastating floods in Pakistan and Asia's hottest year on record in 2020, all of which threaten decades of economic and social development gains.
Every dollar that can be mobilized in the fight against climate change is needed.
And there is a significant source of funds that has so far only reached a fraction of its climate potential: Islamic finance. Since its inception in the 1970s, the faith-based Islamic finance industry has grown to almost $3 trillion globally, and its focus on tangible assets offers strong potential to support climate action.
A version of this article appears in the print on December 12, 2022, of The Himalayan Times.
