Press Release: PCAF and CIBAFI sign Memorandum of Understanding to roll out carbon measurement in the Islamic banking sector

  • 27/Feb/2020

Bern, 27 February 2020 - The Partnership for Carbon Accounting Financials (PCAF) and the General Council for Islamic Banks and Financial Institutions (CIBAFI), signed today a Memorandum of Understanding (MoU) to enable Islamic banks to measure and disclose the greenhouse gas (GHG) emissions associated with their loans and investments.

PCAF and CIBAFI will collaborate in the development of a bespoke carbon footprint measurement methodology for Islamic banking. The methodology will be prepared by CIBAFI Secretariat with support from its members in collaboration with PCAF.

Through this collaboration, CIBAFI aims to have its members subscribe to the PCAF initiative, whereby they commit to measure the carbon footprint of their lending and investment portfolios.

The MoU was signed by the PCAF Steering Committee and Dr. Abdelilah Belatik, Secretary General of CIBAFI, during the 11th Annual Meeting of the Global Alliance for Banking on Values.

Dr. Abdelilah Belatik, Secretary General of CIBAFI, said:

“CIBAFI’s new strategic plan for the period 2019 – 2022 reflects our support to sustainability as well as reinforces the role of Islamic banks in tackling global challenges. Addressing the climate change issue, which represents a threat to the sustainability of the banking sector in general including the Islamic banking sector, must start with the identification of banks’ involvement in the GHG emissions in order to determine the necessary actions to manage the climate change risks. The measurement methodology developed under this partnership between CIBAFI and PCAF will serve as a tool and guide for Islamic banks to measure their portfolio’s emission.”
Marcos Eguiguren Executive Director, Global Alliance for Banking on Values - PCAF Steering Committee Member, said :

“This Memorandum of Understanding between PCAF and CIBAFI to jointly develop methodologies for Islamic banks to measure and report GHG emissions is an important step forward to advancing deep positive change in the banking sector worldwide. The PCAF - CIBAFI partnership is founded on the conviction that action from all financial actors — big and small — is urgently needed.  It replicates PCAF’s broader commitment to collaboration and open-source methodologies that will pave the way for every financial institution in the world to develop a transparent relationship with the environment”.

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