London: The principles of Islamic finance can lead the way in sustainable investment as the world seeks to mobilize the vast amounts of capital needed to address the climate crisis, said the Sultan of Perak, Sultan Nazrin Muizzuddin Shah. He emphasized that the transition to a resilient and sustainable future could not be financed by public treasuries alone, making private capital essential; however, such capital tends to focus on immediate and certain returns when left to its own instincts.

According to BERNAMA News Agency, Sultan Nazrin highlighted that the principles of Islamic finance offer a unique opportunity to guide sustainable investment. "A tradition that binds finance to the real economy, insists that capital serve productive and beneficial ends, shares risk rather than shifting it onto others, and forbids the reckless and the harmful - this is most well suited to the demands of sustainable investment," Sultan Nazrin remarked during his special address at the 17th Securities Commission (SC)-OCIS Roundtable held at the Oxford Centre for Islamic Studies United Kingdom (OCIS).

Building on these principles, Sultan Nazrin called for the development of sukuk structures, waqf-based mechanisms, and green and blue financing instruments that prioritize impact over commercial convenience. This approach, he asserted, requires the courage to challenge existing attitudes and priorities within the financial industry.

Sultan Nazrin further explained that a financial industry that innovates boldly and prices climate risk honestly should be modeled on Islamic finance. He noted that what much of the world has recently termed responsible finance is seen in the Islamic tradition as simply finance conducted properly.

In this context, the Ruler emphasized that responsible investment also plays a crucial role in funding innovation. He noted the rapid advancements in clean energy technologies, efficient agriculture, water management, and resilient construction, which are progressing at an unprecedented pace.

Sultan Nazrin pointed out that in 2025, wind, solar, and other renewable energy sources surpassed coal as the world's leading source of electricity. "For me, this is a sign of progress, and a cause for optimism," he added.