Angus Clelland

The GCBC Forum’s focus shifted to the foundations of effective capacity building as Simon Thompson opened a fireside conversation with Alice Spencer, Interim Executive Director of Education at the Cambridge Institute for Sustainable Leadership (CISL), and Omar Shaikh, Managing Director of the Global Ethical Finance Initiative (GEFI). Their dialogue explored what truly works in helping individuals, institutions, and ecosystems translate knowledge into meaningful climate finance actions.

Defining Success Before Numbers – Alice Spencer (CISL)

Alice acknowledged the difficulty of measuring the real-world impact of capacity building, noting that mindset shifts and behavioural changes are often hard to quantify. She stressed the importance of setting clear objectives from the outset. Rather than focusing solely on the number of people trained, CISL tracks how effectively participants adapt business models, strategies, or policies as indicators of genuine progress. Moving beyond individual training, CISL has embraced scalable online programmes and peer networks to foster ongoing learning and collaboration.

An Ecosystem Approach – Omar Shaikh (GEFI)

Omar reinforced the need for a holistic perspective. Capacity building, he explained, must be integrated with an enabling regulatory environment and the development of concrete financial products and solutions. This ensures that knowledge is not abstract but directly linked to practical application. Omar highlighted the importance of fostering a shared understanding among stakeholders before launching training initiatives, tailoring interventions to local contexts, and encouraging broader, more strategic discussions around the purpose of sustainability rather than focusing solely on technical details.

Broader Perspectives and Purpose

Both speakers agreed that while technical knowledge is essential, mindset and capability shifts drive transformational change. Faith-based finance, such as Islamic finance, can enrich these efforts by bringing valuable perspectives on ethical, social, and community-focused dimensions—often the overlooked “S” in ESG.

Looking Ahead

Asked for one piece of advice to newcomers in the climate finance arena, Alice advocated nurturing curiosity and maintaining a hopeful vision, while Omar encouraged engaging in selective forums and team-based learning to strengthen collective capacity.

Key Takeaways

• Set Clear Goals: Define desired outcomes beyond participant numbers to ensure capacity building leads to tangible changes.
• Integrate Across Systems: Align training with policy, regulation, and product development for lasting impact.
• Foster Mindset Shifts: Go beyond technical knowledge to embrace philosophical and strategic dimensions of sustainability.
• Leverage Diverse Perspectives: Incorporate insights from faith-based finance and other communities to enrich understanding.
• Invest in Ongoing Learning: Use scalable platforms, peer networks, and collaborative forums to sustain engagement and growth.

By marrying technical knowledge with purpose-driven dialogue, capacity building can transcend mere instruction and become a catalyst for the systemic transformation needed to mobilise climate finance at scale.

Omar Shaikh (GEFI) moderated an expert panel examining the complexities of mobilising climate finance for emerging markets. Building on earlier insights, the discussion focused on bridging capacity gaps, addressing project development challenges, and overcoming market constraints.

Islamic Development Bank (IsDB) – Mohsin Sharif

Mohsin outlined the IDB’s “Promising Strategy for Sustainable Future,” which evolved from its COVID-19 response. With a goal of directing 35% of annual approvals towards clean and climate finance by 2025—a target met two years early—the IDB highlights the importance of harmonised definitions and taxonomies to clarify financing priorities. Establishing dashboards and guidelines further supports banks in improving their sustainability practices.

HSBC – Sabrin Rahman

Sabrin emphasised HSBC’s focus on catalysing new economies, decarbonising, and leveraging global trade. Partnering with think-tanks, development banks, and policymakers helps translate policy into practical solutions. Harmonising regional taxonomies and engaging early with policymakers to integrate climate considerations into trade agreements are key. HSBC’s experiments with outcome-based bonds and blended finance initiatives, including nature-based solution funds, showcase innovative approaches.

Franklin Templeton – Mohieddine (Dino) Kronfol

Dino presented a reality check. While acknowledging vast financing needs, he highlighted significant barriers—limited creditworthiness, potential crowding out of private investment, and a scarcity of mature projects. Strengthening fundamentals such as sustainable public finances and reliable capital access is essential before expecting trillions in climate finance. Public-private partnerships, blended finance, and de-risking strategies can help attract the necessary capital.

Common Threads

All panellists agreed on the need for unified taxonomies, clearer regulations, and stronger capacity building across the ecosystem. Faith-based finance, impact-driven strategies, and balancing fiduciary duties with environmental goals also emerged as important themes.

Key Takeaways

• Harmonised Definitions: Aligning taxonomies is crucial for clarity in sustainable finance.
• Policy and Practice: Early engagement and better-aligned trade agreements bridge the ambition-to-action gap.
• Strengthened Foundations: Robust public finances and improved project pipelines are prerequisites for large-scale climate funding.
• Innovative Tools: Outcome-based bonds, blended finance, and public-private partnerships are promising mechanisms.
• Capacity Building: Strengthening skills, frameworks, and understanding is vital to mobilise climate finance effectively.

The panel underscored that while the challenges are significant, strategic collaboration, innovation, and capacity enhancement can pave the way for scaling climate finance in emerging markets.

Luma Saqqaf, Director for the Middle East, Africa, and India at the Principles for Responsible Investment (PRI), delivered a deeply informed keynote addressing the challenges of financing climate action in emerging markets as. Her remarks painted a detailed picture of the immense financing gap that stands between ambitious climate targets and the reality on the ground.

Luma cited the High-Level Experts Group on Climate Finance’s staggering estimate of $6.7 trillion needed annually to advance global climate action—of which emerging markets alone require $2.4 trillion. Yet, current climate finance flows fall far short, hovering around $1.5 trillion globally, with a mere 15% reaching emerging markets. She emphasised that this shortfall is particularly worrisome given that these regions are poised to produce half of global emissions by 2030.

The challenges are manifold. Emerging markets often struggle with creditworthiness, limited budgets, and insufficient sustainability maturity, complicating access to crucial climate funds. Luma underscored that many countries cannot meet their climate commitments without external support—Egypt’s need for $264 billion to achieve its 2030 targets in just three sectors is a telling example. Clarity around new climate goals (NCQG) and the respective responsibilities of developed and developing nations remains elusive, further hindering progress.

Nonetheless, Luma spotlighted promising initiatives: Just Energy Transition Partnerships, the WAFI platform in Egypt, and growing momentum in sustainable agriculture and land restoration. She stressed that bridging the gap requires more than just capital—it demands impact-focused investing and reconciling fiduciary duties with meaningful environmental and social outcomes. Capacity building, both at institutional and governmental levels, is central to enabling strategic planning, effective disclosures, and robust project pipelines.

Concluding on a measured but hopeful note, Luma acknowledged that while scaling up climate finance for emerging markets is no small feat, dedicated collaboration and a whole-of-government approach can make a transformative difference. Her keynote served as a call to action, urging stakeholders to not only recognise the magnitude of the challenge but also to commit to the practical steps needed to drive lasting, equitable climate solutions.

The Global Capacity Building Coalition (GCBC)’s inaugural Forum took a significant turn towards practical progress as Jamal Saleh, Director-General of the UAE Banks Federation, shared an insightful overview of sustainable finance advancements in the UAE over the past year. Representing all banks in the country, the federation’s collective efforts have centered on translating ambitious climate pledges into tangible market shifts.

One of the most notable commitments was the UAE banks’ pledge at COP28 to mobilise over $1 trillion in sustainable financing by 2030—a target Jamal proudly noted they are on track to meet, potentially even ahead of schedule. He underlined the importance of establishing a common definition of sustainable finance at the outset, ensuring a shared understanding across all institutions. This foundational step paved the way for the development of a monthly dashboard to monitor sustainable financing performance, enhancing transparency and accountability for member banks.

Jamal emphasised that transforming the market involves more than just allocating capital to green projects. The federation set out rules for banks to operate more sustainably, not only in their own practices but also through their relationships with customers and suppliers. This holistic approach is guiding the industry toward comprehensive ESG integration, moving beyond the confines of “green finance” to embed sustainability across environmental, social, and governance dimensions.

To support SMEs, the federation is building an end-to-end ecosystem of incentives, equipping smaller enterprises to align with ESG objectives and benefit from the evolving sustainable finance landscape. Harmonising understanding, shaping the right regulatory environment, and ensuring robust capacity building were underscored as key to sustaining this momentum.

Jamal’s keynote effectively highlighted the UAE’s unwavering commitment to scaling sustainable finance. By fostering shared definitions, enhanced oversight, and ecosystem-wide engagement, the federation is setting a strong precedent for how financial institutions can lead the way in driving transformative change.

Alia Al Zarouni, Chief Operating Officer of the Dubai International Financial Centre (DIFC), welcomed attendees at the Climate Finance Capacity Building Forum. She expressed gratitude to the partners—the Global Capacity Building Coalition (GCBC) and the Global Ethical Finance Initiative (GEFI)—for co-hosting the event, emphasising the importance of collaborative efforts to shape a resilient and sustainable financial ecosystem.

Alia outlined the DIFC’s significant strides in fostering sustainable finance, highlighting two cornerstone initiatives: the Dubai Sustainable Finance Working Group and the DIFC Sustainable Finance Catalyst. Together, these initiatives provide a comprehensive framework aimed at strengthening the sustainability ecosystem both locally and globally. The Sustainable Finance Catalyst’s ambition to support the capacity building of 1 million sustainability leaders by 2030 underscored her belief that investing in human capital is essential for driving meaningful, long-term change.

She also spotlighted the Dubai Sustainable Finance Working Group’s role in rallying over 40 member organisations to create practical solutions for mobilising capital, de-risking investments, and supporting sustainable economic growth. Another pivotal commitment—the DIFC’s decarbonisation strategy—aims to achieve net-zero emissions by 2045, outpacing national targets and signaling the region’s determined stance on climate action.

In closing, Alia expressed confidence that the forum would shed light on the critical capacity gaps and investment barriers hindering climate finance, particularly in emerging markets. Her remarks set the stage for the day’s discussions, reinforcing DIFC’s dedication to nurturing a financial environment where innovation, knowledge-sharing, and targeted capacity building can accelerate sustainable finance and climate resilience worldwide.

Dubai, UAE – 9^th Dec, Global Ethical Finance Initiative (GEFI), Islamic Finance Council UK (UKIFC) and HSBC Bank Middle East have come together today to launch a new 1-year partnership to cultivate a purpose-driven Islamic finance ecosystem that can increase sustainable finance flows at scale.

Against the backdrop of UAE Banks Federation’s COP28 pledge of over AED 1 trillion in sustainable finance by 2030 and DIFC’s Sustainable Finance Catalyst commitment to scale future capacity by training 1 million sustainability leaders by the same year, the Islamic Sustainable Finance Initiative (ISFI) aims to accelerate Islamic finance’s role in achieving sustainable development goals, with a focus on creating systemic change through awareness, capacity building, and engagement across the Middle East, North Africa, and Turkey (MENAT) region.

Having recognised the shared principles of ethical investing and societal responsibility, GEFI and UKIFC have been working collaboratively for several years to integrate Islamic finance into mainstream sustainable finance. The ISFI will build on GEFI / UKIFC’s previous work with a structured programme focused on:

• Market Awareness & Engagement – round tables and conferences
• Capacity Building – a structured CPD-accredited training course covering both sustainable finance and Islamic sustainable finance
• Knowledge Hub & Portal – Repository of guidance, best practices, and resources including toolkits
• Retail survey – focusing on GCC consumers, the survey will look to capture understanding and appetite towards sustainability linked products.

HSBC has been a leader in integrating sustainability with Islamic finance, pioneering initiatives such as sustainable sukuk offerings and ESG-linked Islamic structures to support environmentally and socially responsible investments in line with Islamic principles of ethical financing. With its support of the ISFI, through philanthropic funding, HSBC Bank Middle East is demonstrating its commitment to supporting the development of sustainable finance infrastructure in the middle east.

The ISFI also aligns with the UAE Central Bank’s vision, as set out at COP28, for Islamic finance to be a beacon of sustainable finance in the region.

The announcement was made during the Global Capacity Building Coalition’s (GCBC) inaugural Climate Finance Capacity Building Forum, delivered in partnership with GEFI and DIFC, with support from UAE Banks Federation and CISI. The Forum provided practical advice and guidance on building the capacity required to align financial flows with long-term climate goals and accelerate the journey to net zero.

With its leadership in green finance, commitment to sustainable development, established position as a global hub for Islamic finance, and supportive strategic government policies and financial infrastructure, the UAE is well placed to host the regional Islamic Sustainable Finance Initiative.

Omar Shaikh, Managing Director of the Global Ethical Finance Initiative (GEFI), delivered a compelling presentation on the pivotal role of Islamic finance in advancing global sustainability goals. He began by outlining GEFI’s mission to build sustainable finance ecosystems through advocacy and solutions, emphasizing the importance of private sector engagement in driving meaningful change. 

Omar highlighted how events like the global financial crisis and the climate crisis have reshaped the narrative around finance, leading to concepts like profit with purpose and stakeholder capitalism. He pointed out that while Islamic finance is inherently ethical—avoiding investments in harmful sectors—there is a significant opportunity to deepen its impact on sustainability issues such as climate change and social justice. 

Central to his message was the shift from focusing solely on what is permissible (halal) to embracing what is wholesome and good (tayyib). This transition involves not just avoiding harm but actively promoting environmental stewardship and social well-being, aligning with the ethical and spiritual dimensions of Islamic principles. 

Omar also addressed unique features of Islamic finance that can enhance sustainable finance, such as the prohibition of speculative financial instruments and the integration of spiritual values like baraka (blessings). He acknowledged challenges within the industry, including the need for greater authenticity and alignment with the spirit of Shariah law. 

In closing, Omar emphasized the substantial market opportunity. If just 5% of the projected $8 trillion Islamic finance market by 2030 is dedicated to sustainable finance, it would represent a $400 billion opportunity. He called for collaborative efforts among regulators, industry players, and grassroots organizations to unlock the full potential of Islamic sustainable finance. 

 Key Takeaways: 

• Opportunity for Growth: Islamic finance can significantly contribute to global sustainability by moving beyond compliance to proactive impact. 

• Shift in Mindset: Embracing the concept of tayyib encourages a deeper commitment to environmental and social responsibility. 

• Market Potential: Aligning Islamic finance with sustainability principles presents a substantial economic opportunity, benefiting both the industry and global efforts to address climate challenges. 

Tariq Al-Olaimy, Advisor to the Ummah for Earth Alliance with Greenpeace, delivered an insightful presentation on the critical role Islamic finance can play in advancing renewable energy investments. He highlighted that the Islamic finance industry, managing $4.5 trillion in assets, has the potential to unlock $400 billion for climate finance by 2030 by allocating just 5% of its assets to renewable projects. 

Tariq emphasized the significant growth in ESG Sukuk markets and the expansion of renewable energy capacity in countries like Saudi Arabia and the UAE, demonstrating the sector’s momentum. He showcased case studies such as the Saudi Electricity Company’s green Sukuk and Indonesia’s sovereign green Sukuk program, which have resulted in substantial environmental and social impacts. 

To provide a practical roadmap, Tariq introduced the “EDUCATE” framework for Islamic finance institutions: 

• Engage: Connect financiers with renewable energy developers. 

• Disseminate: Share success stories and best practices. 

• Unlock: Position Islamic finance as a preferred source for renewable projects. 

• Collaborate: Work across sectors to amplify impact. 

• Advocate: Push for supportive policies and regulations. 

• Take Action: Implement tangible measures towards sustainability. 

• Evaluate: Assess outcomes based on Islamic principles. 

In closing, Tariq stressed the necessity for Islamic finance institutions to establish sustainability infrastructures, set clear green financing targets, and innovate with new financial products. He affirmed that by aligning financial practices with environmental stewardship, Islamic finance can significantly contribute to global climate solutions. 

Key Takeaways: 

• Islamic finance can unlock $400 billion for climate finance by 2030. 

• Growth in green Sukuk reflects increasing investor interest in sustainability. 

• The “EDUCATE” framework offers actionable steps for engagement. 

• Innovation and collaboration are vital to meet sustainability goals.

Tariq’s session highlighted the immense potential of Islamic finance to drive renewable energy investments and address climate challenges. By integrating sustainability into financial strategies, Islamic finance institutions can play a pivotal role in fostering a sustainable and resilient future. 

A dynamic panel comprising Razvan Dumitrescu (ENBD Capital), Debashis Dey (White & Case), and Basheer Ahmad (DFSA), moderated by Luma Saqqaf (PRI), delved into the opportunities and challenges of the green and sustainable Sukuk market. 

The discussion highlighted the UAE’s leadership in sustainable Sukuk issuances, with the DIFC hosting a significant portion of global activity. Razvan Dumitrescu noted that regulatory initiatives like the UAE Central Bank’s sustainable finance guidelines have been pivotal catalysts. 

Debashis Dey pointed out that while investor demand for green and sustainable Sukuk is growing, supply remains constrained. Limited offerings and a need for greater capacity building and awareness are hurdles that the industry must overcome to meet investor appetite. 

From a regulatory perspective, Basheer Ahmad emphasized the role of authorities in fostering market growth. He mentioned that while the DFSA currently defers to issuers’ Sharia governance, there is potential for more proactive measures, including incentives, to stimulate the market. 

The panel agreed that Islamic finance’s foundational principles of “do no harm” align naturally with sustainability goals. However, the industry needs to move beyond mere compliance to actively focus on creating positive environmental and social impact. 

Key Takeaways: 

• UAE’s Leadership: The UAE is at the forefront of sustainable Sukuk issuances, driven by supportive regulatory frameworks. 

• Supply-Demand Gap: Growing investor demand contrasts with limited supply, highlighting the need for more issuances and product innovation. 

• Regulatory Support: Enhanced collaboration between regulators and industry players can help unlock the market’s potential. 

• Ethical Alignment: Islamic finance principles align with sustainability, but a shift towards proactive impact is necessary.

The panel underscored the significant potential for Islamic finance to drive sustainable investment. Realizing this potential requires collective efforts from industry practitioners, regulators, and other stakeholders to foster innovation, expand offerings, and educate market participants. 

Tayyab Ahmed, Head of Research for Islamic Finance at the London Stock Exchange Group (LSEG) Data and Analytics, presented valuable insights from the “Green and Sustainability Sukuk 2024: Crossing Borders” report. He highlighted the rapid growth of the green and sustainability Sukuk market, the evolving regulatory landscape, and the steps needed to scale the market further. 

One of the key highlights Tayyab mentioned is the impressive growth in the issuance of green and sustainability Sukuk, which reached $11 billion by the third quarter of 2024. This marks a significant rise since the market’s inception in 2017, indicating strong momentum. Despite this growth, green and sustainability Sukuk still represent a small fraction of total ESG bonds and Sukuk issuance, suggesting substantial room for expansion. 

Tayyab pointed out that while demand is increasing—with 55% of investors planning to invest in green and sustainability Sukuk in the next three years—there are supply-side challenges. Nearly 45% of investors cite limited offerings as a key obstacle, and 60% have only a basic understanding of Sukuk and sustainability principles. This underscores the need for capacity building and greater awareness to bridge the knowledge gap and expand the market. 

To address these challenges, Tayyab called for promoting common regional and international standards, building capacity within the market, and expanding the investor base beyond traditional Sukuk investors. He emphasized that supportive regulatory frameworks and taxonomies in countries like Malaysia, Indonesia, and the UAE are crucial in fostering the growth of the green Sukuk market. 

In his closing remarks, Tayyab highlighted that achieving significant growth in the green and sustainability Sukuk market is a collective effort. By enhancing market depth through innovation and education, and leveraging supportive regulatory environments, the industry can move towards raising annual issuance from $30 billion to $50 billion, contributing meaningfully to global sustainable finance objectives. 

Key Takeaways: 

• The green and sustainability Sukuk market is rapidly growing but remains a small fraction of total ESG issuance. 

• Increasing investor demand exists, but supply limitations and knowledge gaps need to be addressed. 

• Capacity building, common standards, and expanding the investor base are essential for scaling the market.

Tayyab’s presentation underscores the significant potential of green and sustainability Sukuk in bridging the financing gap for sustainable development. By addressing current challenges and leveraging opportunities, the Islamic finance industry can play a pivotal role in advancing global sustainability goals.