Mumbai: RBI Governor Sanjay malhotra On Thursday Urged Banks to Strengthen Risk Management Frameworks to Address Credit Risks Associated with Emerging Green Technologies, Which Have Limited Reliability and Afffficiency TRACK RECORORS “Regulated entities Need to Developable Capacity and Technical Know-HOW to Better Appraise Risks in Financing Projects Using Such Green Technologies,” He Said at the POLICY SAMINAR SAMINAR SHEMINAR SHEMINAR SHEMINAR ON CHENGE Risks and Finance in New Delhi.
Malhotra stressed the need for financial institutions to prepare for Climate-Related Risks, which impact bot individual entities and the broader financial system. “Climate-Related Changes are clear and Visible. They are intensified and threatening ecosystems, livelihoods, and economies, “He said, calling for collective action.
RBI is undertaking measures, such as stress testing and Scenario Analysis, to Assess the Financial Impact of Climate Risks. “Our goal is to make a realistic establishment of climate risks on the financial system. This requires comprehensive assessment, which is no easy task, ”He said. To bridge data gaps, rbi is developing the reserve bank-Climate Risk Information System (RB-CRIS), which will provide standardized datasets on Climate Risks, Including data, Transition pathways, and carbon emission intensity data.
To promote climate Financing, RBI has included Small renewable energy projects In Priority Sector Lending to Ensure Credit Access for Green Initiatives. However, Malhotra Noted that a Lack of Bankable Projects Remains A Challenge. “Creation of a Common Pool of Such Projects will have Multi-Fold Benefits for the EcoSystem,” He Said, Urging Financial Institutions to Collaborate.
He also highlighted global coordination efforts, pointing to the Network for Greening The Financial System (NGFS), which provides technical guidance for managing Climate-Related Financial Risks“We will continue work to build a financial system that can withstand future climate shocks and contribute to India's sustainable and resilient future,” He said.
RBI plans to introduce further initiatives, Including a dedicated cohort on Climate Change Risks under its regulatory sandbox program and a special 'Greenathon' focused on Sustaainable Finannable. Malhotra Called for Greater Collaboration Among Financial Institutes, Regulators, and Urged Govt to Ensure a harmonised regulatory approach.
(Tagstotranslate) Sustainable Finance Initiatives (T) Sanjay Malhotra (T) Renewable Energy Projects (T) RBI Climate Financing (T) Network for Greening The FinanCial System (T) Green Tech Cons Risks (T) Financial Risk Management (T) Climate-Related Financial Risks
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