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

The collaboration will open doors for promoting the Voluntary Carbon Market within the Organization of Islamic Cooperation (“OIC”).

The partnership will utilize Islamic finance to combat climate change. The collaboration will open doors for promoting the Voluntary Carbon Market within the Organization of Islamic Cooperation (“OIC”). The partnership will open doors to provide advisory and financing services to businesses aiming to offset their carbon footprint or seeking to generate Carbon Credits from their activities.

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.

November 17, 2022