RBI report focuses on climate change, challenges to sustainable growth

The theme of the report is 'Towards a Greener Cleaner India'.

The Reserve Bank of India (RBI), on May 3, released a report on currency and finance for the financial year (FY) 2022-23.  The theme of the report is 'Towards a Greener Cleaner India'.

The apex bank, in a press release, said that the report covers four major dimensions of climate change to assess future challenges to sustainable high growth in India, viz., the unprecedented scale and pace of climate change; its macroeconomic effects; implications for financial stability; and policy options to mitigate climate risks.

"India has embarked on a targeted and time-bound climate action plan to reduce carbon emissions and currently ranks the best amongst G-20 countries as per the Climate Change Performance Index, 2023. India’s green financing requirement is estimated to be at least 2.5 percent of gross domestic product (GDP) annually till 2030," the apex bank stated.

For India to further achieve its net zero target by 2070, the RBI said, the country would require an accelerated reduction in the energy intensity of GDP by around 5 percent annually and a significant improvement in its energy mix in favour of renewables to around 80 percent by 2070-71.

The central bank highlighted that there is a need for a balanced policy intervention with progress ensured across all policy levers for India to achieve its green transition targets by 2030 and later make the net zero goal by 2070 attainable.