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IsDB Raises Share of Financing ‘Climate-Friendly’ Projects to 35%

IsDB Raises Share of Financing ‘Climate-Friendly’ Projects to 35%

Friday, 2 December, 2022 - 08:30
The Islamic Development Bank is committed to increasing financing for projects compatible with sustainability and climate (Asharq Al-Awsat)

Islamic Development Bank (IsDB) Chairman Muhammed Al-Jasser on Friday stressed the importance of cooperation to provide innovative solutions through the promotion of intra-trade and intra-investment.

Al-Jasser also affirmed the need for the exchange of knowledge between member states of the Organization of Islamic Cooperation (OIC). He also reiterated IsDB’s commitment to raising the financing of projects compatible with sustainability and the climate.

In a speech at the 38th ministerial meeting of the Standing Committee for Economic and Commercial Cooperation of the OIC (COMCEC), Al-Jasser addressed IsDB’s response to the multiple crises facing the world, such as the continuing effects of the coronavirus pandemic, the conflict in Eastern Europe, and climate change.

These crises have led to a decrease in the volume of international trade, the diversion of capital flows, and the slowdown in tourism in member countries. Meanwhile, global food and energy prices are rising to alarming levels.

Al-Jasser explained that the IsDB had launched its Strategic Preparedness and Response Program to help member countries contain the repercussions of the pandemic, mitigate their effects, and support recovery.

He noted that as of April 2022, the total commitments of the IsDB under this program amounted to $4.6 billion. Moreover, the IsDB and the Arab Coordination Group (ACG) announced commitments of $10 billion for post-pandemic recovery.

Al-Jasser stated that, to limit the impact of climate change, the ACG announced a $24 billion climate action financing package for the next eight years, and the IsDB will contribute $13 billion to this package between 2023 and 2030.

Moreover, Al-Jasser reaffirmed that the IsDB is committed to significantly increasing its share of financing of climate-friendly projects. The IsDB will continue to do so until it reaches the target of 35% by 2025.

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