Investing in Financial Inclusion for Climate Resilience and Adaptation: The Role of Islamic Financial Services

While there is a growing consensus recognizing that financial inclusion has manifold benefits, including enhancing financial stability and building resilience, there also needs to be a realization that, if the international pledge to foster financial inclusion and support resilience is serious, Islamic financial products must be supported to ensure that Muslim populations are not excluded from the formal financial system. 

This briefing note was prepared ahead of the UN Climate Summit in 2019 to examine the opportunities for investing in Sharia-compliant financial products. The note is based on an extensive literature review and on the research team’s participation in discussions at a roundtable in February 2019 on the role of Islamic financial services in financial inclusion for climate change resilience and adaptation.