15th IFSB-INCEIF/ISRA Consulting Executive Programme: Integrating Islamic Finance into Sustainable Finance: The Role of Regulators and Market Players (Islamic Capital Market Sector)

Theme: Integrating Islamic Finance into Sustainable Finance: The Role of Regulators and Market Players (Islamic Capital Market Sector) Transitioning to sustainable finance and economies including mitigating climate change are amongst major issues that are currently at the forefront of the global consciousness. In recent years, there has been an increase in the efforts to promote more sustainable finance development, both within the public and the private sectors, including through Islamic finance sectors. Islamic finance should have strategic roles and contributions to take part in managing the impact of climate change and environmental, governance or social risks. Accordingly, Islamic finance activities designed to be, or labelled as, sustainable have increased particularly the ICM sector in recent years. Some jurisdictions are taking policy or regulatory steps to enhance the role of the Islamic financial system in the transition towards sustainable finance development. There has also been increasing recognition of climate-related risks as a source of financial risk that can affect not only specific firms or sectors but more broadly the stability of the financial system. This has increased the focus by prudential regulators on these issues within their mandate of ensuring the resiliency of the financial system to material risks.   This executive program intends to discuss and elaborate the roles of regulators and market players in supporting sustainable finance particularly through the Islamic capital market (i.e. Islamic green sukuk and social sukuk).