When Islamic finance joins Greenpeace’s fight

Islamic finance is emerging as an innovative solution to the climate emergency, reveals a joint analysis by Greenpeace MENA and the Global Ethical Finance Initiative. The financial projections are eloquent: the sector is expected to mobilize several trillion dollars by 2027. More precisely, an allocation of only 5% of these assets to renewable energies would make it possible to free up nearly 400 billion dollars by 2030 , a colossal amount to accelerate the energy transition.

This mobilization responds to a crying necessity. Muslim-majority regions are bearing the brunt of climate change: devastating natural disasters, growing food insecurity, disruption of cultural and religious practices. Ramadan, in particular, becomes particularly trying in areas affected by droughts or floods.

Faced with these challenges, several countries are leading the way. Malaysia stands out for its sharia-compliant green bond program, while the United Arab Emirates is increasing its ecological initiatives. Saudi Arabia, for its part, is rolling out an ambitious sustainable development plan aimed at a massive reduction in its carbon emissions by 2030.

Beyond the financial aspects, this approach is rooted in an ancestral philosophy combining social and environmental responsibility. The traditional principles of charity and ethical investment thus find a new resonance in the fight against climate change. Concrete initiatives, such as the installation of solar panels on places of worship or the financing of climate adaptation projects, illustrate this transformative potential.