Islamic Finance Paves the Way for Sustainable Land Restoration and Drought Resilience: UNDP ICPSD and Partners Lead Discussions at UNCCD COP16

5 December 2024 – The Global Islamic Finance and Impact Investing Platform (GIFIIP) Green Sukuk Initiative co-organized a side event with UNDP Kuwait Country Office and Kuwait Finance House (KFH) on 5 December 2024 during the United Nations Convention to Combat Desertification (UNCCD) COP 16 in Riyadh/Saudi Arabia. The event “Unlocking the Potential of Islamic Finance for Land Restoration and Drought Resilience,” explored the transformative role of Islamic finance in combating land degradation and promoting sustainable land management.

As a co-organizer, GIFIIP emphasized the alignment between the ethical principles of Islamic finance which are rooted in fairness, social justice and responsible investing, and the global goals of land restoration and resilient building. The discussions underscored how innovative financial instruments such as Green Sukuk can mobilize resources for climate-smart infrastructure and sustainable agriculture, contributing significantly to the Sustainable Development Goals (SDGs). Dr. Muniruddeen Lallmahamood from the UNDP’s Istanbul International Center for Private Sector in Development (ICPSD), where GIFIIP secretariat is hosted, presented key findings of the UNDP and Kuwait Finance House (KFH) Research on Green Sukuk titled with “Potential Growth and Future Trends of Green Sukuk as a Tool for
Sustainable Financing”. This was followed by panel discussion of experts from UNDP Kuwait Country Office, the Islamic Development Bank (IsDB), Global Islamic Finance Program (GIFP) and other key stakeholders. Strategies for leveraging Islamic finance and blended finance models to achieve COP16 objectives were discussed. The event also highlighted the importance of public-private partnerships in mobilizing resources, the integration of women into financial solutions, and the need for frameworks to measure the impact of sustainable financing initiatives.

This event demonstrated the capacity of Islamic Finance to align ethical principles with global efforts to combat land degradation, foster drought resilience, and promote sustainable land management. By leveraging innovative financing mechanisms, GIFIIP reaffirms its commitment to advancing sustainability and addressing critical global challenges.