News & Events old

Author: Aurélien Pillet, Climate & Innovative Finance Lead, Globesight

In recent years, the global community has intensified its efforts to combat climate change, recognizing it as one of the most pressing challenges of our time. However, despite the almost doubling in annual climate finance over the past decade, finance flows need to multiply at least seven-fold to US$ 4.3 trillion by 2030, as highlighted by the Climate Policy Initiative (2022). Climate finance needs to be mobilized from the public and private sectors as well as from conventional and innovative sources. As nations and organizations strive to implement sustainable practices and reduce carbon emissions, innovative approaches to finance are emerging. One such approach gaining traction is Islamic climate finance, which merges the principles of Islamic finance with environmental stewardship.

Islamic finance operates on the principles of Shariah, or Islamic law, which prohibits unethical or exploitative practices and encourages social responsibility and economic justice. The core principles of Islamic finance include the prohibition of interest (riba), uncertainty (gharar), and investments in businesses that involve activities deemed harmful or forbidden in Islam, such as alcohol, gambling, and weapons. According to the Asian Development Bank and the Islamic Development Bank (2022), Islamic finance has grown significantly since its inception in the 1970s and is a US$ 3 trillion industry in over 80 countries, concentrated in well-established Islamic finance markets, notably in the Gulf (Qatar, Saudi Arabia, and UAE) and Asia (Indonesia and Malaysia).

In the context of climate change, Islamic finance offers a unique perspective that aligns with the principles of environmental conservation and sustainable development. Islamic climate finance encompasses various instruments and mechanisms designed to fund projects and initiatives that address climate change while adhering to Shariah principles. In Islamic finance generally, there has been increasing interest in Environmental, Social, and Governance considerations (ESG), as well as green and sustainable products.

One of the key instruments of Islamic climate finance is the green Sukuk, often referred to as Islamic green bonds. Green Sukuk are structured to generate returns to investors without violating Islamic principles. These bonds can be used to finance green projects such as renewable energy infrastructure, energy-efficient buildings, and sustainable transportation systems. By issuing Sukuk for climate-friendly projects, governments and corporations can raise capital while contributing to environmental sustainability.

In addition to green Sukuk, Islamic banks and financial institutions are increasingly offering green financing products that comply with Shariah principles, such as green investment funds that channel capital into sustainable businesses and initiatives.

Islamic microfinance is another aspect of Islamic climate finance that focuses on providing financial services to low-income individuals and communities, particularly in regions vulnerable to the impacts of climate change. By offering microfinance products that support climate adaptation and resilience-building efforts, Islamic microfinance institutions contribute to poverty alleviation and environmental sustainability simultaneously.

Furthermore, Islamic social finance mechanisms such as Zakat (obligatory almsgiving) and Waqf (endowment) can be leveraged to finance climate-related projects and initiatives. Zakat funds, collected from eligible individuals, can be directed toward environmental conservation projects, disaster relief efforts, and community resilience programs. Similarly, Waqf assets, dedicated to charitable purposes, can be used to establish sustainable infrastructure and support climate adaptation measures.

The principles of transparency, accountability, and risk-sharing inherent in Islamic finance can enhance the resilience and effectiveness of climate finance initiatives. By prioritizing ethical investments and promoting equitable resource distribution, Islamic climate finance can contribute to the achievement of global climate goals while upholding the values of social justice and economic inclusivity.

However, challenges remain in mainstreaming Islamic climate finance and scaling up its impact. According to the G20 (2023), Islamic climate finance constitutes less than 2% of global Islamic finance. These challenges include the lack of standardized frameworks for Shariah-compliant green finance, limited awareness and understanding of Islamic finance principles among stakeholders, and the need for greater collaboration between Islamic financial institutions, governments, and international organizations. (see Figure 1).

To overcome these challenges and unlock the full potential of Islamic climate finance, concerted efforts are required from policymakers, regulators, financial institutions, civil society organizations, and religious scholars. This may involve developing comprehensive guidelines and standards for Shariah-compliant green finance, enhancing capacity-building initiatives, and fostering partnerships to mobilize resources and expertise, as well as building dedicated project pipelines and proposing dedicated Islamic climate finance windows (e.g., in the Green Climate Fund) to support enhanced climate action. In addition, the 2023 G20 Policy Brief has identified opportunities for growth in the Islamic Climate Finance Market based on ease of implementation and alignment with climate goals. These include more accessible mechanisms such as International green sukuk issuances and regional green infrastructure funds supported by Multilateral Development Banks, as well as more climate-targeted goals such as climate takaful programs, green Islamic finance technology, and Paris-aligned awqaf investments. (See Figure 2)

The growth in international green sukuk issuances shows that Islamic climate finance represents a promising avenue for integrating faith-based values with environmental responsibility to address the urgent challenges of climate change and helping to bridge the climate finance gaps in the Middle East and North Africa (MENA), Sub Saharan Africa, and South Asia at pace, and at scale. By embracing the principles of ethical finance and social justice, as well as financial innovation, Islamic climate finance has the potential to catalyze climate finance pathways and contribute to a greener, more resilient, and equitable future for the regions.

As the world marks the first official International Day on Clean Energy on January 26, 2024, it’s important to reflect on the pivotal commitments made recently by global leaders at COP28. Their pledge to expedite the deployment of renewables and enhance energy efficiency marks an incremental but important step towards realizing the collective objectives of the Paris Agreement. This commitment underscores the urgency of steering the world towards energy systems free of fossil fuels by mid-century at the latest.

To keep global warming well below 2°C and limit it to 1.5°C, experts from the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) advocate for a tripling of renewable energy capacity by 2030, equivalent to at least 11,000 GW. Additionally, it is vital to double the global average annual rate of energy efficiency improvements from around 2% to over 4% annually until 2030.

The transformation of global energy systems holds the potential to create new jobs, enhance lives, and empower people and communities. This is integral to achieving UN SDG 7 for “affordable, reliable, sustainable, and modern energy for all,” addressing the needs of nearly 800 million people globally without access to electricity.

Looking ahead, nations are poised to leverage a diversified portfolio of technologies to decarbonize the energy sector. This includes renewables, energy efficiency, and other zero-emission technologies. Nations have showcased commendable progress aligned with their Nationally Determined Contributions (NDCs) and carbon neutrality commitments, demonstrating a global commitment to a sustainable future.

Acknowledging the importance of this decade for renewables and energy efficiency, accelerated action and ambitious policy implementation are vital to addressing energy security and affordability challenges. However, the current financial pledges fall far short of the trillions of dollars required, highlighting the urgency for a robust global rethink.

A transformative journey towards clean energy that is also just, requires a robust set of policy measures, which enhance global framework conditions and elevate market readiness. Key aspects include facilitating technology transfer, mitigating protectionist practices, upholding rules-based international trade principles, and optimizing processes related to permitting and public procurement for clean energy technologies and projects. 

Collaboration is also essential, both between states, but also between states and a wide range of stakeholders. Promoting international partnerships, knowledge-sharing initiatives, and advocating for research and development investments will accelerate the global adoption of clean energy solutions. Additionally, creating incentives for innovation and emphasizing inclusivity, ensuring active participation from marginalized communities, contribute to a more equitable and sustainable future. By integrating these elements into policy, we can build a resilient foundation for a just and successful clean energy transition.

As for financing, a more agile and intelligent approach to climate finance is essential for unlocking a just and seamless transition to clean energy. The pace and scale of climate financing will need to be unprecedented to transition from billions to trillions. Simply put, this requires higher commitments from the Global North. Deploying innovative market-based financial and de-risking instruments, streamlining due diligence and investment approval processes, and providing technical assistance and capacity-building support. This should expedite access to climate finance, enhance the pipeline of bankable projects, and empower nations to achieve their climate mitigation goals.

Furthermore, channeling funds through green funds into catalytic clean energy programs in the Global South will be instrumental in achieving broader sustainability objectives. Embracing innovative, market-based financial mechanisms and business models is imperative to cultivate a robust portfolio of bankable projects, de-risk investments, and attract private sector funding at scale. 

Additionally, supplementing these efforts with additional funds from compliance carbon markets and voluntary carbon markets will further augment financial support for clean energy initiatives. This multifaceted approach ensures that financing mechanisms align with the urgency and magnitude of the global clean energy transition, fostering a sustainable and equitable future.

On this International Clean Energy Day, we stand at a crossroads, acknowledging the progress made at COP28 and the monumental task ahead. As repeatedly made clear by leaders across the globe, the urgency to expedite the deployment of renewables and enhance energy efficiency cannot be overstated. However, our current financial commitments fall far short of the mark. So, as we celebrate the progress made, let this be a call to action — a commitment to mobilize the trillions required, leveraging agile climate finance and channeling funds strategically to achieve a sustainable and equitable energy future. The path forward demands unprecedented commitment, but through collective resolve, we can usher in an era where clean energy is more accessible, affordable, reliable, and sustainable, especially for countries in the Global South.

– Aurélien Pillet – Climate & Innovative Finance Lead, Globesight

The 2030.solutions platform had a soft launch today, providing a global platform to highlight commentary and articles from leading industry experts in the global #impactsector. The platform will also provide a space to challenge ideas and promote new solutions. Using insider perspectives, the platform will highlight informed commentary to provoke solutions, challenges, and ideas for discussions, and critical thinking to help ensure that the world reaches the outcomes set out by the Sustainable Development Goals. 

In 2015, the 2030 Agenda for Sustainable Development was set to put the world on a path of peace, prosperity, and opportunity for all on a healthy planet. The 17 Sustainable Development Goals (SDGs) demand nothing short of a transformation of the financial, economic, and political systems that govern our societies today to ensure a better world for all. 

While they require immense political will and ambitious action by all stakeholders, global efforts to date have been insufficient to deliver the change we need, jeopardizing the Agenda’s promise to current and future generations. 

Amidst a global pandemic, world leaders convened last year for the 75th Session of #UNGA. The High-Level Meetings stressed the need for ‘transformative action’ and ‘solidarity’ for a world in crisis. Yet six years into the implementation of the 2030 Agenda we are further than ever from meeting the #SustainableDevelopmentGoals. The same ideas and institutions are simply not going to be enough. We need new thinking. 

The 2030.solutions platform’s incisive commentary will challenge existing assumptions and promote new solutions for a more just, equal, decent, and inclusive world and help ensure the world reaches the outcomes set out by the 2030 Agenda.

Find out more at: 2030.solutions/ 

Globesight hosted the virtual roundtable “Mobilize Millions: Investing in the Fintech Gender Dividend in Pakistan”  in partnership with the Pakistan Fintech Network to advance gender inclusion in the fintech market in Pakistan.

Through the Mobilize Millions initiative, and as a ‘Commitment Maker’ under the UN Women Generation Equality Forum’s Action Coalition on Technology and Innovation for Gender Equality, Globesight has been looking to drive action-oriented investment in support of gender inclusion in the fintech space.

Together with its partner, the Pakistan Fintech Network, Globesight hosted the virtual roundtable “Mobilize Millions: Investing in the Fintech Gender Dividend in Pakistan”  to advance gender inclusion in the Pakistan fintech market. The event convened leading start-ups as well as other key stakeholders in the fintech, investment, and gender equality space. 

The roundtable focused specifically on how growth companies can capture the opportunity that the gender dividend offers by expanding its total addressable market while at the same time serving the underbanked and unbanked, who are mostly women in Pakistan. The contributions from participants touched on principles and approaches that fintech start-ups can adopt to address the financial inclusion gender gap in Pakistan, namely: 

• Better understanding social norms that act as barriers to women’s access to technology and finance in Pakistan.
• Increasing focus on what potential women users want and need in terms of financial services, and how they can benefit from those services.
• Defining more clearly market opportunities that can be unlocked through pushing for greater gender inclusion; investing in gender inclusion is not just about moral imperatives but also an investment that is profitable for business.

In May 2020, Speak Up Africa joined together with Globesight to launch the bi-weekly #StaySafeAfrica COVID-19 tracker, as part of the #StaySafeAfrica campaign.

The campaign worked to build trust in vaccines among the general public to promote uptake, while simultaneously advocating for equitable access to these vaccines to support the World Health Organization, and national governments’ response plans. #StaySafeAfrica aims to strengthen Africa’s capacity to develop and adopt innovative solutions to the continent’s biggest health challenges. 

Focused on Africa, the tracker, which was powered by Globesight, provided timely and relevant news updates as well as analyses of key philanthropic efforts and institutional responses to COVID-19 across the public, private, philanthropic, and multilateral sectors in the African continent. From vaccination efforts and the latest COVID-19 figures to pan-African and regional spotlights, the tracker provided a comprehensive overview of the ever-evolving COVID-19 situation in Africa for the past year. 

The #StaySafeAfrica COVID-19 trackers added significant value to our understanding of context-specific strategies to emerging health crises, and of funding mechanisms and opportunities for LMICs, as well as perspectives into trends at play in the aid and philanthropic sectors. They gave real-time insight into the inequality demonstrated in response and preparedness to health crises in LMICs compared to advanced economies. As the African continent encountered multiple waves of COVID-19, the trackers highlighted calls for vaccine equity and innovative solutions for more sustainable health systems in Africa.

After a successful run with over 35 trackers sent out to a database of over 800 subscribers, the #StaySafeAfrica COVID-19 tracker concluded in October 2021. We are grateful for the support it received and hope that the tracker proved to be a useful tool in helping improve access to information. We will be bringing forth more of these thoughts with platforms like 2030.solutions and other forums. 

The tracker’s archive can be accessed here as a resource.

Globesight’s jointly hosted roundtable alongside Developing World Markets convened IFC’s Senior Manager of Blended Finance Kruskaia Sierra-Escalante; UNHCR’s Chief of Section for Development Partnerships, Analytics and Research in the Resilience and Solutions Division Betsy Lippman; DFC’s Director of Finance Bruce D. Cameron and Developing World Market’s Partner and Co-head of Private Equity Aleem Remtula to discuss scaling innovative finance solutions for forcibly displaced people, refugees and host communities. The discussion was moderated by Globesight’s Development Finance Advisor Cedric Joutet.

The Roundtable enabled participants to collectively assess the landscape of innovative finance for displaced communities and refugees, identify critical enablers for impact, and scale common pathways of innovation. The panel addressed the growing numbers of displaced persons globally especially among threats like climate change. It emphasized the private sector’s ability to bring the scale required to address the financing gap for forcibly displaced people, refugees, and host communities especially in protracted situations; humanitarian aid can not meet the financing gap alone. Blended and innovative finance can facilitate the transition from concessional financing to commercial solutions, unlocking more private sector players to build commercially sustainable markets. Since high perceived risk is a deterrent for new players, it is important to build partnerships that can create precedents. This risk can also be mitigated through mining evidence and data such as the UNHCR study that substantiated that refugees payback and the IFC Kakuma study that tracked the circulation of money within the camp’s economy.

The group also highlighted how facilities such as SIDA-UNHCR, the NASIRA fund, Kiva Refugee Investment Fund (KRIF), and Development Impact Bond (DIB) for refugees are building the necessary track record for innovative financing for refugees. Further, IFC has also launched the new Blended Finance for Refugees facility which seeks to de-risk and increase the financial viability of projects benefiting displaced communities in African and Middle Eastern countries. UNHCR is also exploring innovative instruments including a green financing facility to reduce their carbon footprint, an impact bond for innovative livelihoods, and an innovative fund to finance for reforestation and clean cooking solutions. Innovest Advisory and FMO also shared successful insights from their respective interventions; mainly highlighting the importance of gathering granular data and insight into lending impact.

While tremendous progress has been achieved, further dialogue and partnerships are needed to allow international agencies and the private sector to collaborate further, create new markets, and attract return-oriented capital with a positive impact on forcibly displaced people, refugees and their host communities.

Watch here: https://www.youtube.com/watch?v=J9EWoH-knTw&t=10s

In April 2020, Globesight launched the COVID-19 global response tracker under its Advocacy and Knowledge arm, a weekly round-up of the latest COVID-19 response developments across the globe.

At the onset of the COVID-19 pandemic, it became clear that there was a significant information gap, particularly around the situation in the Global East & South, which are areas of focus for Globesight. We also knew that the support needed across the Middle East, Africa and South Asia would be immense. While we often work behind the scenes, we wanted to bring to light greater awareness of the COVID-19 situation and response to help make sure key stakeholders could be better informed in their decision-making around the pandemic. 

The COVID-19 global response tracker, in tandem with the Stay Safe Africa COVID-19 tracker, which focused on Africa, provided timely and relevant updates and analyses of key philanthropic efforts and institutional responses to COVID-19 across the private, philanthropic, and multilateral sectors. Following the outbreak of the COVID-19 pandemic, global and national funding and aid were invested to respond to the devastating impacts of the new health crisis. As the world rapidly mobilized around the unique, evolving needs of this challenging and unprecedented pandemic, Globesight found it was important to provide a resource to track the movement and impact of global aid.

From April 2020 to September 2021, Globesight systematically tracked the COVID-19 response and gathered key insights on the effects of the pandemic across relevant sectors. Knowing where and how aid flows contributed to better understanding the successes, gaps, and shortcomings of this unprecedented worldwide mobilization effort. The COVID-19 trackers added significant value to our understanding of funding mechanisms and opportunities in times of crises and provided perspectives into trends at play in the aid and philanthropic sectors. They presented an opportunity to evaluate how swift, efficient, and equitable aid responses were throughout the many deadly COVID-19 waves that countries encountered, and to demonstrate the need for similar systematic monitoring resources that can capture rapid developments in real-time. After a successful run with over 75 trackers sent out, the COVID-19 global response tracker concluded in September 2021. The tracker’s archive can be accessed here as a resource. 

The COVID-19 situation remains ongoing. Today, more than ever, we need an integrated response across global health and development issues to address underlying challenges. Our decision to bring to a close these trackers is not because we feel that the situation has been resolved vis-a-vis COVID-19. We will be bringing forth more of these thoughts with platforms like 2030.solutions and other forums.

Visit the Archive

Proceeds from the donation will go towards ending river blindness and lymphatic filariasis in vulnerable communities

 Globesight has donated $100,000 to The Reach Campaign, an awareness and fundraising initiative, which aims to end two neglected tropical diseases (NTDs), river blindness and lymphatic filariasis.

River blindness and lymphatic filariasis disproportionately affect the world’s poorest people. Over 200 million people globally require treatment for river blindness, one of the leading causes of preventable blindness, while over 850 million people are at risk of lymphatic filariasis.

Proceeds from The Reach Campaign go towards the Reaching the Last Mile Fund (RLMF), which offers a proof of concept for the elimination of the two diseases in Sub-Saharan Africa. Administered by the END Fund, RLMF is a 10-year, $100 million USD initiative launched in 2017 by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and several supporters including The Bill & Melinda Gates Foundation.

The RLMF delivers preventative treatment for NTDs and focuses on ways to accelerate progress towards elimination – from investing in disease mapping efforts, to supporting advanced lab facilities and cross-border collaborations.

Globesight’s donation represents the first contribution as part of the Reach Giving Circle, which consists of a collection of philanthropists who are dedicated to ending NTDs and empowering people to live healthy and dignified lives. Their generosity advances the work of the RLMF, which aims to free the next generation of NTDs. A $100,000 contribution can either protect 200,000 people from contracting river blindness and lymphatic filariasis for a full year or 3,000 people over their entire life from the aforementioned NTDs.

Taufiq Rahim, Globesight President, said: “We are proud to be supporting Reach through this commitment at a time when the world’s attention and funding for fighting to end neglected tropical diseases is under threat. It is also important for the private sector to step up and we hope that our contribution to the Reach reinforces that call to action.”

Nassar Al Mubarak, Managing Director of The Reach Campaign, said: “We are thankful for Globesight’s contribution to The Reach Campaign – their generosity advances our efforts and ultimately helps some of the most vulnerable populations across the globe.

“NTDs affect around 1.5 billion people worldwide – these diseases are not only preventable, but eliminating them will have widespread benefits amongst communities. Often, the children of adults who have contracted one of the diseases will have to drop out of school to become primary caregivers, impacting the entire family and trapping families in a cycle of poverty. Our hope is that through eliminating them, we can empower some of the most vulnerable communities to live a healthier and more productive life.”

With headquarters in the US and UAE, Globesight aims to advance meaningful impact for a more just, decent, equal and inclusive world. The organization focuses on policy, platform and partnership development to help scale impact around the world through transformative solutions. Recently, Globesight has been more direct in its own philanthropy from providing oxygen and ventilators to vulnerable communities impacted by the COVID-19 crisis in India and Uganda, contributing to COVAX to drive vaccine equity forward, and providing humanitarian aid in times of tragedy such as the Global Aid for Lebanon Campaign. The sectors of focus are global health, gender equality, and humanitarian assistance, and a broad view of the integrated 2030 sustainable development agenda. The contribution to Reach is an important milestone in the increasing focus on direct philanthropy at Globesight.

For more information, or to contribute, please visit: https://www.reachtheend.org/

About Reach
The Reach Campaign is an initiative to end river blindness and lymphatic filariasis. Over 200 million people worldwide require treatment for river blindness while 850 million people are at risk of lymphatic filariasis. Like many neglected tropical diseases (NTDs), river blindness and lymphatic filariasis disproportionately affect the world’s most vulnerable people, trapping their families in cycles of poverty. Proceeds from the campaign will go to the Reaching the Last Mile Fund (RLMF). Administered by the END Fund, RLMF delivers prevention and treatment across 7 countries in Africa and the Middle East. Together we can help end river blindness and lymphatic filariasis and ensure a brighter future for millions.

About Globesight
Globesight is a leading global development firm working collaboratively with innovative partners to craft solutions to the world’s most pressing social issues. Globesight develops strategies, investigates complex issues through relevant research, cultivates insights in data-scarce environments, and aims to reframe the conversation to challenge assumptions on advancing change. Its team of strategists, advocates, and experts work across sectors and issues helping organizations navigate complex social challenges, define their impact potential, and build innovative solutions that will both achieve their goals and drive ours forward. Globesight is headquartered between Dubai and New York.

To support Uganda’s COVID-19 response, Globesight has partnered with not-for-profit and last-mile logistics provider, Crown Agents, to supply four oxygen concentrators to national medical stores across Uganda.

Uganda’s health system is under strain to cope with continuous new cases of COVID-19 and the resulting deaths. Other diseases, such as malaria, are on the rise as healthcare efforts over the last year have turned their focus to COVID-19. Many private and public hospitals across the country have reported acute shortages of both the AstraZeneca vaccines and oxygen to treat patients over the last year.

Globesight’s President, Taufiq Rahim stated, “As COVID-19 cases take a toll on the country’s health infrastructure and the daily lives of the local population, we all need to step up and support the people of Uganda.”

Globesight’s partnership with Crown Agents and donation to the company’s ‘Lab to Jab COVID-19 Response Facility’ is a prime example of the meaningful role private sector companies can play in rapidly responding to emergency situations. Within 24 hours of joining the ‘Response Facility’ the development firm had donated four oxygen concentrators to Uganda.

Oxygen concentrators can produce oxygen 24-hours a day and have a lifespan of at least five years. Globesight’s donation of the concentrators alone could provide over 175,000 hours of oxygen until 2026 during their operational life.

The concentrators were safely delivered to the Central Medical Store in Entebbe to be distributed further across the country. Rahim further stressed, “Globesight’s contribution should be a signal to the private sector and global partners to not stand on the side-lines.”

Crown Agents’ ‘Lab to Jab COVID-19 Response Facility’ aims to combine business expertise, networks, and resources with Crown Agents’ procurement and last-mile logistics capabilities and presence across the globe in order to enhance and speed up emergency responses.

“We set up The Lab to Jab COVID-19 Response Facility to help make COVID-19 vaccines available and improve access to quality healthcare for all. By working with the private se­ctor, international development companies can leverage their extensive tools and skills to ensure support gets to where it is most needed in the quickest timeframe. Partnerships like the one we have formed with Globesight are imperative for preventing millions more from dying from COVID-19 and helping countries to build back better.” says Fergus Drake, Crown Agents Chief Executive Officer.