The Reserve Bank of India (RBI) recently joined the Network for Greening the Financial System (NGFS) as a member.
- The RBI expects to benefit from the membership of NGFS by learning from and contributing to global efforts on green finance, which has assumed significance in the context of climate change.
Note: The Central bank joined the NGFS on April 23, 2021.
- NGFS was launched at the Paris One Planet Summit on December 12, 2017.
- The initiative was launched by eight central banks under the leadership of Banque de France.
- The NGFS is a group of central banks and supervisors willing to share best practices and contribute to the development of environment and climate risk management in the financial sector, while mobilising mainstream finance to support the transition towards a sustainable economy.
- There are 83 central banks associated with the system. Of these 75 are members and 13 are observers.
- Green finance assumed significance in the context of climate change.
- The main objective of the system is to increase and accelerate green finance.
- It aims to help the members design policies and climate risk resilience in financial sector.
Current Functions of NGFS:
The NGFS is currently working under the following:
- Workstream on “Microprudential or Supervision” chaired by Mr Zeng Yi Wong (Monetary authority of Singapore)
- Workstream on “Macrofinacial works” Chaired by Ms Sarah Breeden (Bank of England)
- Workstream on “Scaling up the Green Finance” by Deutsche Bundesbank (Germany)
- Workstream on “Bridging the data gaps” International Monetary Fund
- Workstream on “Research” chaired by Mr Ma Jun (People’s Bank of China)