Islamic Development Bank

Founded:

1975

Mission:

"Promoting social and economic development in member countries and Muslim communities worldwide, delivering impact at scale."

Total assets:

$780 million

Headquarters:

Jeddah, Saudi Arabia

Top five shareholders:

Saudi Arabia, Algeria, Iran, Egypt and Turkey

This page is part of the E3G Public Bank Climate Tracker Matrix, our tool to help you assess the Paris alignment of public banks, MDBs and DFIs.

Metric	Summary
Promotion of green finance	UNDER REVIEW Paris aligned – The IsDB engages with an array of partners to help member countries ‘green’ their financial systems.
Fossil to non-fossil energy finance ratio and scaling up climate finance	UNDER REVIEW Not applicable – no information available for this metric.
Nature based solutions	UNDER REVIEW Unaligned – Commitment to no deforestation for green finance lending but no evidence of commitments in areas of nature based solutions.
Climate risk, resilience, and adaptation	UNDER REVIEW Some progress – Evidence of good project-level climate risk screening. Further work needed at portfolio level and enhancing client climate resilience. More progress also needed on adaptation finance.
Overarching climate strategy	UNDER REVIEW Some progress – The strategic framework of IsDB for climate change is comprehensive and details how IsDB intends to align with the Paris Agreement. IsDB clearly links its climate change strategies to the overarching strategy. However, the strategy misses a clear timeline for Paris alignment.
Integration of climate mitigation and resilience in key sectoral strategies	UNDER REVIEW Some progress – The IsDB has put in place multiple sector strategies that incorporate climate effectively. The approach to adaptation in the energy sector should be highlighted as transformational best-practice.
Institutional leadership	UNDER REVIEW Paris aligned – The IsDB has shown itself to be a leader in Islamic green finance and incorporating climate and sustainability into their approach to the Islamic finance industry.
Energy access and fuel poverty	UNDER REVIEW Not available – It is unclear whether a bank-specific goal has been set and whether progress monitoring is taking place.
Energy efficiency strategy, standards and investment	UNDER REVIEW Unaligned – IsDB energy policy mentions efficiency but further information on exact standards applied needed.
Fossil fuel exclusion policies	UNDER REVIEW Unaligned – No policies to restrict financing of fossil fuels at IsDB, although significant exclusions are applied to IsDB “green” finance under the Sustainable Finance Framework, which is a first step.
Greenhouse gas accounting and reduction	UNDER REVIEW Unaligned – No GHG accounting at project or portfolio level.
Shadow carbon pricing	UNDER REVIEW Not available – no information available on carbon pricing at IsDB.
Country level work	UNDER REVIEW Paris aligned – The Bank integrates climate change in a number of country strategy documents, and supports members in NDC “improvement” and implementation.
Technical assistance for implementing Paris goals	UNDER REVIEW Paris aligned – Partnerships within the IsDB and with partners in place to provide NDC and non-NDC climate related technical assistance.
Transparency of climate finance data	UNDER REVIEW Unaligned – There appears to be very little transparency of IsDB operations, although the bank has just started contributing to the Joint MDB Report on Climate Finance.