Economy - Reports
RBI DG highlights risks from extreme climate events and climate change As on : 28-Nov-24  11:40

RBI Deputy Governor M Rajeshwar Rao while speaking at the 'High-Level Policy Conference of Central Banks in the Global South' organised by the Reserve Bank of India as a part of commemoration of its 90th year said that earlier the discussion regarding climate related risk was more of an intellectual discourse. But things have changed in the due course and the extreme weather conditions, longer spells of summer, and uneven monsoon have led policy makers rethink their stance. Today, every international forum discusses the climate risks- both physical and transitional- in detail and deliberate upon possible solutions. Adaptation risks are also being flagged. As a policy maker, it is still a challenge to quantify the climate related risks and its impact of the real economy and the financial sector, he said. The demand for resources to fund the real sector entities to manage physical, transition and adaptation risks can mean new institutions, newer categories of resources and new business models amongst existing institutions. These will be a new challenge for the regulators.

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