Islamic finance will be 'crucial part' of climate transition: UK official

Jack Dutton

Sep 4, 2023

Wind turbines and power lines cut across the landscape of the Romney Marshes on Aug. 10, 2023, in Camber, United Kingdom. — Naomi Baker/Getty

LONDON — Islamic finance will play “a crucial part” in meeting the just transition, or the phasing down from a high carbon economy to a low carbon green economy to meet climate change targets, according to the former Lord Mayor of London.

The Lord Mayor of London is an elected official who acts as an international ambassador for the UK’s financial and professional services sectors. Alderman Vincent Keaveny, who was Lord Mayor between 2021 and 2022, on Monday described Britain as “at the vanguard” of Islamic finance.

“As the world is ramping up in its efforts to tackle climate change, green and sustainable sukuk will become ever more important in Islamic finance. Islamic finance will be a crucial part of meeting the just transition challenge,” Keaveny said at the IFN UK Forum in London.

“The UK is the only place that leads in both conventional and green finance rankings, and in 2021, His Majesty’s Treasury came together with other groups to form a high-level working group on green sukuk,” he added.