Islamic finance by its very nature has synergies with climate finance in that it seeks to avoid investing in socially detrimental activities.4 The ESG-linked sukuk market, though currently small – only 2.6% of global outstanding sukuk – is fast-growing, and expected to increase to around 5% of the sukuk market in the next 5 years.5 Global annual sukuk issuance itself is estimated to grow at a rate of nearly 7% per year over the next five years, reaching $ in 2027.6 The growth of green and sustainability sukuk over the coming years presents an opportunity for the world to accelerate sustainable investment. The Bank of England's role in supporting the transition to net zero The Bank of England is supporting the transition to net-zero in three main ways. First, through policy advocacy. The Bank of England supports the global objectives of mobilising finance flows consistent with the Paris Agreement and supporting climate-  2/5  BIS - Central bankers' speeches  resilient development. For example, during the Indonesian G20 presidency, the Bank has worked to ensure consistency and comparability in climate disclosure frameworks in its support for the IFRS's ISSB and its draft standards. For the global financial sector to mobilise finance efficiently to support the transition to net zero, we need a transition finance infrastructure to be put in-place. This includes common definitions, climate disclosures, broader government policy and transition plans from across the economy.
Through a potentially much greater contribution from Islamic finance, progressed by our discussions and learnings today, we can better achieve the G20 Indonesian Presidency aim to "recover together, recover stronger". I would like to thank Zish Jooma, Amy Lee and Rupal Patel for their help in preparing the text and Arshadur Rahman, Timothy Rawlings and Christopher Worthington for their comments and contributions. 4/5  BIS - Central bankers' speeches  1 I am indebted to my colleague Andrew Hauser for this speech reference, which was  included in his December 2020 speech 'Why Islamic finance has an important role to play in supporting the recovery from Covid – and how the Bank of England's new Alternative Liquidity Facility can help', at the launch of the ALF. 2 International Energy Agency (2021), World Energy Outlook 2021 3 Glasgow Financial Alliance for Net Zero, GFANZ (2022), Financial Institution Net-zero  Transition Plans 4 Rahman, A. (2018) Chapter 9: The Case for GDP-linked sukuk. In Shiller, R, et al.,  Sovereign GDP-linked bonds: Rationale and design(pp. 79-88), CEPR Press, London. 5 Fitch Ratings (2022), Special Report: Global ESG Sukuk Market 6 Refinitiv (2022), Sukuk Perceptions and Forecast Study 2022: Navigating a New  Environment  5/5  BIS - Central bankers' speeches