RBI’s report estimates India’s Green Financing Requirement at 2.5% of GDP

RBI releases Guidelines on Establishment of Digital Banking Units (DBUs)

RBI’s report estimates India’s Green Financing Requirement at 2.5% of GDP

  • The Reserve Bank of India’s (RBI’s) report on Currency and Finance (RCF) for the year 2022-23 states that India’s green financing requirement is estimated to be at least 2.5 percent of GDP annually till 2030.
  • It must be remembered that the Government of India has set the target to achieve net zero carbon emissions by 2070.
  • The RBI’s report covers four major dimensions of climate change to assess future challenges to sustainable high growth in India.
  • These are
    1. unprecedented scale and pace of climate change;
    2. its macroeconomic effects;
    3. implications for financial stability;
    4. policy options to mitigate climate risks.
  • The report further states that India’s goal to achieve the net zero target by 2070 would require an accelerated reduction in the energy intensity of GDP by around 5 percent annually.
  • A significant improvement is also required in energy-mix in favour of renewables to around 80 percent by 2070-71

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