Latest news with #ConferenceonGreenInfrastructureFinance
News18
3 days ago
- Business
- News18
RBI Dy Guv pitches for enhanced global cooperation to tackle climate change
Agency: PTI Pune, Jul 18 (PTI) RBI Deputy Governor M Rajeshwar Rao has called for enhanced global cooperation including technology transfer and R&D funding to deal with challenges posed by the climate change. Stressing that no country can achieve net-zero in isolation, he said climate change is the quintessential global challenge and so the response. Rao was speaking at the Conference on Green Infrastructure Finance at College of Agriculture Banking, RBI here recently. 'There is a requirement of enhanced global cooperation in this regard which must also extend to technology transfer, R&D funding, and skills development to enable development of technical expertise to identify, design, and structure bankable sustainable and green infrastructure projects," he said. The Reserve Bank posted his speech on its website on Friday. The Deputy Governor said that the focus needs to shift from project-based finance to overall market development with policy reforms, development of a project pipeline, and consistent regulatory frameworks, creating systemic conditions for fostering sustainable and green infrastructure finance. 'There is also requirement for Multilateral Development Banks (MDBs), Development Financial Institutions (DFIs), National Development Banks (NDBs) and Vertical Climate and Environmental Funds (VCEFs) to harmonise approach and operations and enable joint funding to enable shift from being direct lenders to catalytic partners and bring in economies of scale in sustainable and green infrastructure projects financing," Rao said. He further said the international financial architecture also needs to be reoriented toward sustainability. The de-risking of sustainable and green infrastructure can work best when national, local, and multilateral institutions co-invest, signalling policy credibility and technical robustness, Rao said. He emphasised that MDBs and global climate funds may need to revisit their governance structure to reflect the voice of recipient countries, particularly the global south and not just donor countries. 'Innovative financial instruments such as debt-for-climate swaps and climate-resilient debt clauses must also be scaled up to create fiscal space for green investments," he said. The Reserve Bank of India, he said has been proactive in its resolve to facilitate creation of a robust ecosystem wherein the assessment and mitigation of climate change risks are fostered and its impact on the economy and financial system is curtailed. Rao emphasised that the scale of the impact of events arising out of climate change requires sizeable investments in technology and scale of finance to both build resilience and enable mitigation. As per OECD report, the investment required for green and sustainable infrastructure is estimated at USD 3-5 trillion per year until 2050. PTI NKD ANU view comments First Published: July 18, 2025, 18:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
3 days ago
- Business
- Business Standard
Climate risks may impact biz segment consisting largely of MSMEs: DG Rao
RBI Deputy Governor M Rajeshwar Rao highlights that climate risks will impact MSMEs, unorganised sectors, and unlisted corporates, stressing the need for awareness and risk assessments Given that climate change and climate risks are likely to impact a business segment consisting largely of MSMEs, unorganised sectors, and unlisted corporates, creating awareness and understanding among these borrowers on climate change risks and obtaining the required information becomes important, said M Rajeshwar Rao, Deputy Governor, Reserve Bank of India, on July 3 at the Conference on Green Infrastructure Finance at the College of Agriculture Banking, RBI, Pune. The speech was published on the RBI website on Friday. 'Climate change risks directly impact the real economy, and the financial sector, in turn, gets impacted on account of its credit exposure to the real economy,' Rao said, adding that for the financial sector to perform a comprehensive risk assessment, relevant information flow from the real economy, i.e., corporate/institutional borrowers, in a timely manner is important. Rao highlighted that as sustainable and green infrastructure technologies contribute to the reduction or avoidance of greenhouse gas (GHG) emission intensity, a critical consideration for financing entities is to address the risks of greenwashing. 'For a creditor to fund any project intended to achieve reductions in GHG emissions, there is a need to clearly understand how these projected reductions are being quantified,' he said, adding that it would also require a robust and independent Monitoring, Reporting, and Verification (MRV) function. 'Standardised processes and databases to inform and quantify such benefits would be necessary to increase the funding avenues for such infrastructure projects,' he said. Financial professionals must align with national net-zero goals, innovate, and collaborate globally while acting locally. He further said that in today's world of climate volatility, resource constraints, and inequality, sustainable and green infrastructure is essential. All infrastructure, whether power plants or buildings, must support, not hinder, the path to net-zero emissions.
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Business Standard
3 days ago
- Business
- Business Standard
RBI Dy Guv bats for global unity, tech transfer to fight climate change
RBI Deputy Governor M Rajeshwar Rao has called for enhanced global cooperation including technology transfer and R&D funding to deal with challenges posed by the climate change. Stressing that no country can achieve net-zero in isolation, he said climate change is the quintessential global challenge and so the response. Rao was speaking at the Conference on Green Infrastructure Finance at College of Agriculture Banking, RBI here recently. "There is a requirement of enhanced global cooperation in this regard which must also extend to technology transfer, R&D funding, and skills development to enable development of technical expertise to identify, design, and structure bankable sustainable and green infrastructure projects," he said. The Reserve Bank posted his speech on its website on Friday. The Deputy Governor said that the focus needs to shift from project-based finance to overall market development with policy reforms, development of a project pipeline, and consistent regulatory frameworks, creating systemic conditions for fostering sustainable and green infrastructure finance. The senior RBI official also made a case for an adequate mix of public and private funding where the public funds crowd in the private funds through appropriate incentive structure. Specific mechanisms need to be enabled wherein global funds scale their mandates from project-level support to market-shaping interventions, also targeting underdeveloped sectors like adaptation infrastructure, and nature-based solutions. "There is also requirement for Multilateral Development Banks (MDBs), Development Financial Institutions (DFIs), National Development Banks (NDBs) and Vertical Climate and Environmental Funds (VCEFs) to harmonise approach and operations and enable joint funding to enable shift from being direct lenders to catalytic partners and bring in economies of scale in sustainable and green infrastructure projects financing," Rao said. He further said the international financial architecture also needs to be reoriented toward sustainability. The de-risking of sustainable and green infrastructure can work best when national, local, and multilateral institutions co-invest, signalling policy credibility and technical robustness, Rao said. He emphasised that MDBs and global climate funds may need to revisit their governance structure to reflect the voice of recipient countries, particularly the global south and not just donor countries. "Innovative financial instruments such as debt-for-climate swaps and climate-resilient debt clauses must also be scaled up to create fiscal space for green investments," he said. The Reserve Bank of India, he said has been proactive in its resolve to facilitate creation of a robust ecosystem wherein the assessment and mitigation of climate change risks are fostered and its impact on the economy and financial system is curtailed. Rao emphasised that the scale of the impact of events arising out of climate change requires sizeable investments in technology and scale of finance to both build resilience and enable mitigation. As per OECD report, the investment required for green and sustainable infrastructure is estimated at USD 3-5 trillion per year until 2050.
