Background:

Climate Change and associated risks are a stark reality and the need for an appropriate framework to identify, assess and manage financial risks arising out of climate risk has become an imperative. India has committed to generate 50% of its electricity from non-fossil fuel sources by 2030 and become net zero by 2070. Reserve Bank of India recognizes that climate change can translate into climate related financial risks for Regulated Entities(REs) which can have broader financial stability implications. Ensuring access to adequate transition finance and supporting technology would be critical in this process. There is a general consensus that banks and financial institutions will play a key role in financing the transition to a low-carbon economy and supporting the national climate commitments.

Objective:

This program will seek to provide an overview and an enhanced understanding of the regulatory framework and emerging climate change risks. It also seeks to contribute more substantively towards capacity building among senior executives in RBI, Banks, NBFCs and FIs, on the effective mitigation measures to be considered while financing new growth areas and to address the various risks associated with climate change and building up of a green portfolio.

Program Highlights:

The program will deal with the following:

• Evolving regulatory approaches vis-à-vis climate change and sustainable finance
• Economics of sustainable finance, bank resilience and financial stability
• Strategy and policy for incremental growth in credit portfolios and re-balancing of existing portfolios to the emerging needs of climate change
• Risk management for green and sustainable finance
• Building up of a green portfolio from commercial and responsible lending perspectives.