The Reserve Bank of India (RBI) published its ‘Statement of Commitment to Support Greening India’s Financial System – NGFS’ on November 3, 2021 in order to contribute towards global response for meeting the climate goals.

Highlights

• RBI broadly supports the NGFS (Network for Greening the Financial System) declaration.
• It also praised the co-ordination efforts of NGFS in defining, promoting, and contributing towards the development of best practices in climate finance by sharing experiences and best practices.
• RBI joined the Central Banks & Supervisors NGFS on April 23, 2021; as member. This will help RBI in learning from and contributing to global efforts on climate change.

What is Network for Greening the Financial System (NGFS)?

NGFS is a network of 83 central banks and financial supervisors. The network aims to accelerate the scaling up of green finance. It also seeks to develop recommendations for role of central banks for climate change. This network was established in 2017. NGFS’s secretariat is hosted by the Banque de France. Dutch central banker Frank Elderson is the current chair of NGFS. Centralbanking.com had awarded NGFS as the best green initiative of the year 2020.

Background

The NGFS was announced in the year 2017, at the Paris “One Planet Summit”. It was launched by 8 founding central banks.