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30 April 2021.
Introduction:
The Reserve Bank of India recently joined the Network for Greening the Financial System (NGFS). By joining the system, RBI is to learn from and contribute to the Global Climate risk management in the financial sector. Ultimately, the apex bank will work with its global partners to support the transition towards a sustainable economy.
Highlights:
- There are 83 central banks associated with the system. Of these 75 are members and 13 are observers.
- The main objective of the system is to increase and accelerate green finance ,was announced at One Planet Summit held in Paris in 2017.
- The initiative was launched by eight central banks under the leadership of Banque de France.
- It aims to help the members design policies and climate risk resilience in financial sector.
The NGFS is currently working under the following:
- Microprudential or Supervision: Done by Singapore
- Macrofinacial works: By Bank of England
- Scaling up the Green Finance: by Deutsche Bundesbank (Germany)
- Bridging the data gaps: International Monetary Fund
- Research: China