RVCM and ITFC to Partner on Driving ‎Islamic Finance Towards Climate Action

The Regional Voluntary Carbon Market Company (“RVCM”) and The International ‎Islamic Trade Finance Corporation (“ITFC”), member of the Islamic Development ‎Bank (“IsDB”) Group, announced a partnership, which will utilize Islamic finance ‎to combat climate change.‎

The partnership will open doors for promoting the Voluntary Carbon Market in ‎the Organization of Islamic Cooperation (“OIC”) Member States and providing ‎advisory and financing services to businesses aiming to offset their carbon ‎footprint or seeking to generate Carbon Credits from their activities. ‎

In order to facilitate the joint efforts, a Sharia resolution was obtained from the ‎IsDB Group Sharia Board on trading Carbon Credit, which marks a significant ‎moment in the global drive to address climate change by allowing carbon credits ‎as a traded “Rights to Intangible Assets” enabling Islamic Financing. This, in turn, ‎will spur faster action by paying project developers for their climate-positive ‎action today rather than in the future.‎

This collaboration with RVCM marks a milestone towards ITFC’s strategy in the ‎coming years to promote green financing and sustainable trade as it will facilitate ‎deployment of ITFC financing and services to support its member countries’ ‎efforts to reduce GHG emissions and increase their resilience. ‎