2022-12-01-亚开行-解锁伊斯兰气候融资（英）_72页_2mb

Islamic Climate Finance: Analysis and Opportunities

Report Overview:
This report examines the role of Islamic finance in supporting climate action and post-COVID-19 recovery in Asia and the Pacific, focusing on the Islamic Development Bank (IsDB) and Asian Development Bank (ADB) common member countries. It highlights the potential for Islamic finance to mobilize climate finance under the Paris Agreement while addressing climate vulnerabilities in the region.

Key Challenges:

• Supply-Side Obstacles: Fragmented governance frameworks, lack of harmonized standards, limited awareness of climate risks, and gaps in human and institutional resources.
• Demand-Side Obstacles: Inadequate pipelines of climate-resilient projects, high transaction costs for capital market instruments, and shrinking public spending due to COVID-19 economic impacts.

Proposed Pathways to Scale Islamic Climate Finance (ICF):

1. Greening Islamic Capital Markets:

   • Promote standardized green sukuk issuance, aligning with global frameworks like the TCFD.
   • Leverage blended finance to reduce risks for green projects.

2. Greening Islamic Social Finance (ISF):

   • Mainstream climate adaptation into zakat, awqaf, and takaful programs.
   • Enhance ISF’s role in humanitarian aid and resilience funding.

3. Mobilizing Islamic Project Finance for Green Infrastructure:

   • Scale restricted mudarabah financing for renewable energy, sustainable transport, and climate-resilient infrastructure.
   • Use local development banks (e.g., Türkiye’s case) as intermediaries.

4. Developing Green Banking Services for the Unbanked:

   • Expand fintech-enabled Islamic banking services to improve financial inclusion.
   • Target underserved populations with climate-smart investments.

Implementation Strategies:

• Regulatory Harmonization: Develop unified Shari’ah, accounting, and taxonomies standards.
• Capacity Building: Strengthen human resources and awareness programs for climate risks.
• Blended Finance: Use MDBs like ADB and IsDB to de-risk projects and attract private capital.
• Sectoral Focus: Prioritize renewable energy, real estate, and social finance based on country-specific needs.

Opportunities for MDBs:
ADB and IsDB can:

• Establish global Islamic climate funds to bridge investment gaps.
• Pilot innovative financing models, such as the Lives and Livelihood Fund (LLF).
• Collaborate with international partners on climate-focused Islamic finance initiatives.

Conclusion:
ICF holds significant potential for bridging climate investment gaps in Asia and the Pacific. A staged, tailored approach—starting with capital markets and social finance—combined with regulatory reforms and multilateral partnerships—is critical to unlock its full contribution to a green, resilient, and inclusive recovery.