The Reserve Bank of India (RBI) on Wednesday published its ‘Statement of Commitment to Support Greening India’s Financial System – NGFS’ to contribute to the global response required to meet the climate goals.
“The RBI broadly supports the NGFS [Network for Greening the Financial System] declaration. We commend the co-ordination efforts of NGFS in defining, promoting, and contributing to the development of best practices in climate finance through sharing experiences and best practices for climate risk management in the financial sector,” the RBI said.
“Specifically, the RBI, keeping in view our national commitments, priorities and complexity of our financial system, commits to:
Exploring how climate scenario exercises can be used to identifr vulnerabilities in RBI supervised entities’ balance sheets, business models and gaps in their capabilities for measuring and managing climate-related financial risks; lntegrating climate-related risks into financial stability monitoring; Building awareness about climate-related risks among regulated financial institutions and spreading knowledge about issues relating to climate change and methods to deal with them accordingly,” it said.
The RBI said it has joined the Central Banks and Supervisors NGFS as a member on April 23, 2021, to benefit from the membership of NGFS by learning from and contributing to global efforts on Green Finance.
In this regard, on the occasion of the 2021 United Nations Climate Change Conference (COP26), NGFS has reiterated its willingness to contribute to the global response required to meet the objectives of the Paris Agreement, and, to that end, NGFS will expand and strengthen the collective efforts towards greening the financial system,” it said.