RBI's Roadmap to Combat Climate Change Risks in Financial Systems

Reserve Bank Deputy Governor M Rajeshwar Rao emphasized building capabilities to assess and mitigate climate-related risks at a conference in Singapore. He highlighted how climate change poses systemic risks to the financial sector, urging collective action and capacity building for sustainable growth.

Reserve Bank Deputy Governor M Rajeshwar Rao has highlighted the urgent need to develop capabilities to assess and mitigate climate-related risks. Speaking at an international conference organized by the Institute of South Asian Studies at the National University of Singapore, Rao emphasized the growing impact of climate change on the financial system.

Rao pointed out the intertwining risks that climate change poses alongside real economy and financial sector vulnerabilities, ultimately threatening financial stability. As reports indicate escalating global temperatures, Rao warned of a bleak future without collective strong action.

The Reserve Bank of India is proactively addressing these concerns, having established a dedicated group to assess climate risks, conducted surveys, and released frameworks to bolster sustainable finance. These efforts reflect a significant step in crafting a sustainable financial ecosystem for future generations.

(With inputs from agencies.)