IFSB - Islamic Financial Services Board

11/29/2023 | Press release | Distributed by Public on 11/29/2023 22:24

IFSB Joins Islamic Finance Infrastructure Organisations to Make Declaration on Islamic Sustainable Finance

Press Release > 2023

IFSB Joins Islamic Finance Infrastructure Organisations to Make Declaration on Islamic Sustainable Finance

Date posted: 29 November 2023

Caption: Siging ceremony between IFSB, CIBAFI and AAOIFI, facilitated by CBUAE on 29 Nov in Abu Dhabi

29 November 2023, Abu Dhabi - In conjunction with the 28th Conference of the Parties (COP 28) hosted by the United Arab Emirates in 2023, the Islamic Financial Services Board (IFSB) has joined two other Islamic Finance Infrastructure Organisations (IFIO) to sign a declaration of commitment to address gaps in Islamic sustainable finance, through various initiatives within the mandates of each of the respective organisations subject to the final approvals of their respective governance committees.

Facilitated by the Central Bank of the UAE, the three organisations (IFSB, AAOIFI and CIBAFI) have jointly developed a roadmap that sets out areas where each can contribute towards addressing sustainability-related risks and opportunities. It includes ongoing as well as potential future work to provide industry guidance and global benchmarks on prudential regulation, disclosure requirements, market development initiatives and capacity-building and certification programs, subject to the decisions of each of the organisation's governance processes.

All organisations also committed to periodically reviewing the progress of the roadmap and updating or revising initiatives based on global developments and annual work programmes of each organisation.

Speaking at the signing ceremony, Dr Bello Lawal Danbatta, Secretary-General of the IFSB while appreciating the UAE Central Bank's support, highlighted that, "This collaboration represents a landmark achievement, both in terms of the inclusion of Islamic finance for the first time amongst the global climate-change initiatives represented at COP28, as well as the greater alignment and coordination between the work of infrastructure institutions in addressing emerging issues such as climate change and sustainability in the Islamic financial services industry."

The IFSB has been delivering on its Sustainability and Climate-Related Financial Risks Roadmap since 2022, complementing the efforts of global standard-setters and financial regulators to address the specificities of the global sustainability agenda in the context of Islamic finance.

The IFIO declaration signing ceremony at the CBUAE office today, followed the recently concluded Global Sustainability Forum in Abu Dhabi, hosted by CBUAE and organised by the IFSB on November 27, 2023. The event drew over 100 participants from regulatory bodies, international standard-setting bodies, policymakers, and key industry players, and featured in-depth sessions that discuss the path to the sustainable finance roadmap.

To know more about IFSB and its programme around sustainability and climate finance, visit www.ifsb.org.

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