New Delhi, 25/7: Central banks need to incorporate climate-related risks into their supervisory frameworks in order to contribute to the development of frameworks and standards for green finance, said RBI Deputy Governor M Rajeshwar Rao.
Participating in a panel discussion on ‘Climate Implications for Central Banking’, he stressed that financing the new green ventures alone will not be enough and there is a need for credible transition plans for existing emitting firms without compromising their output or growth.
“For this to materialise, central banks can incorporate climate-related risks into their supervisory frameworks and can contribute to the development of frameworks and standards for green finance. These frameworks can help promote transparency, standardization, and integrity in the green finance market,” he said.
On Tuesday RBI released the remarks of Rao at the panel discussion organised by the IMF and Center for Social and Economic Forum on July 19 in New Delhi.
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