The Reserve Bank of India (RBI) had joined the Central Banks and Supervisors Network for Greening the Financial System (NGFS) as a Member on April 23, 2021, to benefit from the membership of NGFS by learning from and contributing to global efforts on Green Finance.

The Reserve Bank of India (RBI) has 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.

On the occasion of the 2021 United Nations Climate Change Conference (COP26), NGFS has reiterated its willingness to contribute to the global response required to meet the objectives of the Paris Agreement, and, to that end, NGFS will expand and strengthen the collective efforts towards greening the financial system.

Key Takeaways

• 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 NGFS was set up to enable member institutions to learn from and contribute to global efforts on green finance. The network also aims to develop recommendations for role of central banks for climate change. NGFS 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.