NEW DELHI: The discussion paper put out by the Reserve Bank of India (RBI) in late July is revealing. In very blunt terms it argues that the risks from climate change are for real and need immediate mitigation.
Further, the inclement fallout of climate change was posing a financial risk to banks. The logic is simple. These kind of unexpected events are likely to cause loss of output, damage to investments and so on, which could potentially impact profitability and thereby the ability of these companies to service the debts owed to banks.
Simultaneously the union government has initiated its own steps. First, Prime Minister Narendra Modi committed India to reaching net zero emissions by 2070 and achieving a target of 50% renewable energy by 2030. In addition to these daunting targets, the government is poised to come out with a national standard for green projects.
All this action comes just months ahead of India inheriting the presidency of the G20—the powerful global grouping which has made fighting climate change central to its agenda.
This week’s episode explores the strategic implications of this impending makeover to India’s climate mitigation strategy.