Reserve Bank of India (RBI) joined as a member of Central Banks and Supervisors’ Network for Greening the Financial System (NGFS).
Important points about NGFS:
- It was launched at the Paris One Planet Summit on December 12, 2017 and RBI became a member of it in April 23,2021.
- NGFS consists of a group of central banks and supervisors willing, on a voluntary basis, they will share best practices and experiences for the development of environment and climate risk management in the financial sector.
- The central Banks will organize the finance to support the transition towards a sustainable economy. RBI as a member, will contribute to global efforts on green finance and climate change
Work Streams of NGFS:
It has structured 5 work streams to achieve its work program they are as follows
- Workstream on “Microprudential/Supervision” – chaired by Mr Zeng Yi Wong (Monetary Authority of Singapore)
- Workstream on “Macrofinancial” – chaired by Ms Sarah Breeden (Bank of England)
- Workstream on “Scaling up green finance” – chaired by Ms Sabine Mauderer (Deutsche Bundesbank)
- Workstream on “Bridging the data gaps” – chaired by Mr Patrick Amis (European Central Bank) and Mr Fabio Natalucci (International Monetary Fund)
- Workstream on “Research” – chaired by Mr Ma Jun (People’s Bank of China)
Recent Related News:
Ghaziabad Municipal Corporation, a civic body in Uttar Pradesh(UP), has become India’s first municipal corporation to issue municipal green bonds. On April 8, 2021, it issued municipal green bonds in BSE and raised Rs 150 crore (Base Issue: 100 Crore with the greenshoe option of 50 Crore).
About Network for Greening the Financial System (NGFS):
Establishment – December 2017
Headquarters – Paris, France
Members – 90 members and 13 observers.
Chair – Frank Elderson (Dutch central banker)