India’s Central Bank governor has said that the Reserve Bank of India will soon issue guidelines for regulated entities to boost green finance and mitigate climate-related financial risks.
“It has been decided to issue guidelines for regulated entities on one, a broad framework for acceptance of green deposits, two, disclosure framework for climate-related financial risks and three, guidance on climate scenario analysis and stress testing,” Shaktikanta Das was quoted to have said while announcing the Monetary Policy Committee’s interest rate decision.
According to him, the measures will ensure that India’s financial system starts to build resilience to withstand any possible vulnerability to climate change after the RBI had in July 2022 released a discussion paper exploring strategies to address climate change-related financial risks.
The announcement by India’s apex bank is coming at a time when Indians are calling on the government to boost sustainable financing to fund green infrastructure projects in the country.
Recall that the federal government sold its first tranche of sovereign green bonds in January, raising 80 billion rupees, with a yield 5-6 basis points below that of comparable government securities.
The RBI’s announcements are the first set of measures, Das said. A few more measures will follow in due course, he added.
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