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PhD seminar presentation

Renewable Energies and Islamic Finance


Presented by Dalal Aassouli , ENS Lyon Singer-Polignac Foundation Seminar Paris January 24, 2014

Outline

Why Renewable Energies Why Islamic Finance Islamic Finance and Renewable Energies The CIRID

Why Renewable Energies


Demand: Increasing demand of energy due to the economic growth and climate change Energy security: Secure and sustainable energy supply which is clean, green and affordable

Energy independence: governments seek to reduce their reliance on imported fossil fuels and have a diversified energy mix
Depletion (years) Coal Gas Oil
Source: empirestatemetals.com

Source: BP Energy outlook 2030

Supply (years) 38 14 15

132 60 42

Why Islamic Finance


Why Islamic Finance

Social
Increasing demand for fair and just financial system Transactions are guided by ethical, moral, and social considerations Considering the interests of the future generations

Economic

Global economy challenges and rising awareness of Islamic Finance Real-asset backing Alternative financing source Investment diversification: Islamic investors are now keen to diversify their investment products

Islamic Finance and Renewable Energies


Water, Sun and Wind: New energies for the world

Green

Ethical

Renewable energies

Sustainable

Real economic development

Islamic finance

Building a green infrastructure with green financing

Study of religious texts


How are the questions of ethics, social responsibility and sustainable development considered in the three monotheisms? A study of the founding texts reveals a shared interest in the questions of: Distribution and sharing of natural resources Fairness in the distribution of wealth Common good and general interest Sustainable development : Securing our present needs and those of future generations

Why Morocco
The largest energy importer in North Africa with over US$3 billion a year spending on fuel and electricity imports Power demand growth of 6.5 per cent a year 8% of total primary energy from renewables in 2012 and USD13 billion expansion of wind, solar and hydroelectric power generation capacity which would increase the share of renewables in the energy mix to 42% by the year 2020, with solar, wind and hydro each contributing 14%. The Desertec Concept to build CSP plants to supply renewable energy from MENA region to European countries by using highvoltage direct current (HVDC) transmission lines.
Source: nationmaster.com

Huge potential of renewable energies and Islamic finance

Why Turkey

Rapidly growing energy demand enlarged by urbanization Turkey has modified its regulations to provide more attractive incentives Vast solar and wind energy potential Turkey ranks second in Europe with its massive solar and onshore wind potential High dependence on energy imports In 2023, the share of renewable energy sources in electricity generation is aimed to be at the level of at least 30% Growing interest in Islamic Finance

Source: nationmaster.com

Huge potential of renewable energies and Islamic finance

The role of Multilateral Development Banks

The MDBs can support their member countries towards developing renewable energy projects in three ways:
By encouraging countries to mainstream clean energy options into national development plans and energy planning. By promoting investment in clean energy and energy efficiency ventures By supporting the sustainable exploitation of the huge energy potential of the continent, while supporting the growth of a low-carbon economy.

The role of regulation: Political willingness: updating regulation and strategic plan for renewables

The CIRID : The Intelligence of Development


The International Research Center for Development Intelligence IRCDI-CIRID- was created by a group of established scholars from various academic institutions and by scholars at the start of their careers, along with professionals in economics, sociology, and politics in France and abroad.
Vision: To resituate the economic, social, and cultural developments of today's world within the framework of the comparative study of the history of societies and cultures. To offer shared, innovative, and ethical solutions in the areas of international law, economics and finance, environment, respect and wellbeing of populations. To contribute to training programs and research projects.

Thank you