XTCC pioneers first Shariah-compliant carbon credit investment ecosystem

XTCC pioneers first Shariah-compliant carbon credit investment ecosystem

XTCC, an investment ecosystem that specialises in high-integrity carbon credits, has announced the launch of the first Shariah-compliant multi-currency asset class for high-integrity carbon credits.

These credits, sourced exclusively from validated projects such as renewable energy, nature-based solutions, and blue carbon, provide a unique opportunity for investors seeking investments compliant with Shariah laws to engage in the rapidly expanding carbon credit market.

The introduction of this Shariah-compliant investment option marks a significant step towards integrating traditional Islamic finance with global efforts to combat climate change. Through XTCC, various stakeholders including corporates, wealth managers, banks, and investment funds can now invest with confidence, contributing to the advancement towards global net zero ambitions.

In a notable first for capital markets, XTCC has also introduced a stock market quoted price for carbon credits, positioning itself as a critical asset in the journey towards a net zero world.

The Shariah compliance of XTCC’s investment products has been validated and certified by Yasaar Research Limited, using the respected ISDA/IIFM Master Agreement. This framework ensures that the investment products adhere to Islamic ethical standards, further enhanced by the partnership with Al Waseelah, a leading Sukuk issuance platform known for its ethical integrity and award-winning services.

Moreover, XTCC’s commitment to high standards is evident in its adherence to key international guidelines such as IOSCO’s 21 Good Practices and ICVCM’s Core Carbon Principles. These science-based principles help identify carbon credits that generate verifiable climate impacts. Additionally, XTCC aligns its operations with the UN Sustainable Development Goals and the ISO14064 standards, ensuring comprehensive sustainability reporting.

Dr. Scott Levy, Founder of XTCC, highlighted the significance of this initiative: “This is a significant breakthrough for global capital markets.  We have created the first Shariah-compliant investment product to link Islamic finance directly with accelerating investor demand for high-integrity carbon credits. In the same way that there ‘can be no compromise on Shariah compliance’, we do not compromise our ethos of operating to the highest standards of transparency and integrity with respect to all of our investment products. XTCC is the asset class for the net zero world.”

Majid Dawood, CEO of Yasaar, added: “We take pride in certifying the Shariah compliance of XTCC’s investment products, ensuring they meet the highest standards of Islamic finance. Our expertise guarantees that every investment decision upholds the ethical and financial principles necessary for true Shariah compliance, empowering investors to contribute positively to sustainable development initiatives with full confidence in their adherence to Islamic values.”

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