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Add to Preferred SourcesThe President of the Islamic Development Bank (IsDB) Group, Dr. Bandar Hajjar, has said that the IsDB Group has devoted special attention to developing clean energy projects in its member countries in order to achieve environmental sustainability and reduce the cost of the Group’s projects.
He added that IsDB member countries enjoyed massive sources of clean energy, such as hydroelectric power, solar energy, and wind energy. The President of the Bank stated that the Bank Group’s renewable energy financing reached US$3.403 billion, including US$2.8 billion for 53 IsDB-financed projects, which represents approximately 20% of the Bank’s financing for the energy sector as a whole. The Islamic Corporation for the Development of the Private Sector (ICD), an IsDB Group member, has provided US$133 million in financing for the sector, while the Islamic Corporation for Insurance of Investment and Export Credit (ICIEC), which is the IsDB Group’s insurance arm, has provided US$470 million in insurance for renewable energy projects in member countries.
“As a development institution aiming to promote socio-economic development in Islamic countries and communities around the world, says Dr. Bandar. Hajjar, we attach great importance to the energy sector as a whole, the sector being a fundamental pillar in the development efforts made by the IsDB in all other sectors. Energy sector financing provided by the IsDB Group, including by the International Islamic Trade Finance Corporation (ITFC) and the ICD, has reached approximately US$56 billion, representing 40% of the Group’s financing since its inception.” Also, the ICIEC, which is the IsDB Group’s insurance arm, has contributed US$22 billion in insurance for energy projects.
With respect to the high priority that the IsDB Group attaches to this sector, Dr. Bandar Hajjar pointed out that clean renewable energy was the main source of energy that all world governments were keen to provide. Besides being a clean and sustainable source of energy, renewable energy contributes significantly to achieving economic growth for world countries.
To ensure that member countries receive a steady flow of financing facilities in this area, the IsDB has established a US$500 million Transform Fund, which works alongside the Engage platform to support STI initiatives in our member countries. He added that the Fund invests millions of dollars annually to make a meaningful change in the lives of millions of people through giving scientists and innovators the opportunity to make impactful breakthroughs in SDGs, including in the SDG on clean energy.
The IsDB President emphasised that the institutions with which the Bank was cooperating in this domain included the International Renewable Energy Agency (IRENA), which is an intergovernmental organisation that aims to encourage the adoption of renewable energy worldwide and provide expertise for applications and policies in this field. The Bank has participated with IRENA in organising numerous workshops and seminars on renewable energy. Aware of the impact of the spread of COVID-19, especially on remote areas, the Bank is currently considering cooperation with the Agency, using solar energy to provide health centres in remote areas with the energy they need to be able to operate.
It should be noted that the IsDB began to be interested in renewable energy since its inception. In 1976, the Bank agreed to finance the Song Lulu Hydropower Project in the Republic of Cameroon. The Bank’s interest in renewable energy and its financing continued in all types of energy, including hydroelectric energy, solar energy, wind energy, as well as other types of renewable energy. In line with the key pillars of its energy sector policy, the Bank is looking to increase the share of renewable energy in its energy portfolio by building partnership strategies with member countries in the energy sector.
Original source: IsDB