Four key areas are essential for financing sustainable development, Syed Hussein Qadri, Director of PGARM at the Islamic Development Bank Group, said at the session titled “8th SDG Dialogue: Innovative Financing for Sustainable Development – Beyond Aid and Traditional Official Development Assistance (ODA)” held within the framework of the Islamic Development Bank Annual Meetings in Baku, APA-Economics reports.
“First, it is necessary to build a portfolio of quality projects. The main issue is creating a pipeline of sustainable projects. Second is standardization. At present, an investor in Kuala Lumpur and an investor in London do not use the same concepts and definitions. This is a serious problem. We saw how important this is even while working on aligning Green Sukuk principles with the London Stock Exchange and the International Capital Market Association,” he said.
He added that the third area is the development of projects and their subsequent placement in the market.
“Here, multilateral development banks and development finance institutions should engage the private sector not only in project preparation but also in placing those projects in financial markets. Discussions regarding MDB debt instruments are also linked to this issue. Finally, the fourth area is the blended finance model. Cooperation with various partners, institutions and at different levels is essential. This includes mobilizing domestic resources, utilizing regional financing opportunities, and attracting charitable funds, zakat and other financial instruments,” he noted.
He stressed that the combined implementation of all these elements would allow for a more optimistic outlook on the future.
“I hope these approaches will deliver important results in the coming period,” Qadri added.
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