Green Central Banking

Financial institutions in India should set up a pool of bankable projects to promote investment in green technologies, Reserve Bank of India (RBI) governor Sanjay Malhotra said in a speech. “Creation of a common pool of such bankable projects will have multi-fold benefits for the entire ecosystem,” he said in a keynote address on climate change risks and finance. Malhotra noted that financing green projects often had higher credit risk due to the use of new technologies, which had a “relatively limited track record in terms of reliability, efficiency, and effectiveness”. To address this, financial institutions should develop capacity and technical expertise to better appraise these risks when making investment decisions. Read more: https://lnkd.in/e9AeZyQu #RBI #ClimateChange

#GreenCentralBanking roundup: 🇰🇷 Bank of Korea outlines need for faster transition 🌳 International Sustainability Standards Board (ISSB) considers biodiversity reporting approaches ❌ Net Zero Banking Alliance to vote on ditching 1.5ºC pledge And more 👇 https://lnkd.in/e64R3d_R

In the third episode of the Sustainability Omnibus Podcast, hosts Moriah Costa and Simon Nixon speak with Tessa Younger, Stewardship Lead at CCLA Investment Management. Younger shares how these standards provide essential clarity for investors, helping to track corporate climate transition efforts and ensure accountability. As the EU continues to debate the simplification of its reporting framework, Tessa emphasises the need to reduce complexity without sacrificing transparency. Catch the latest episode now: GreenCB.co/4bqrtEx #EUOmnibus #CSRD

The Federal Reserve Board claims that leaving the Network for Greening the Financial System (NGFS) was 'not driven by politics', but former US Treasury official Graham Steele says the Trump government's anti-ESG agenda influenced the decision. Read more: GreenCB.co/4byFNe9 #Trump #NGFS #FederalReserve

If the world wants to avoid a potential 50% drop in GDP as a result of climate change impacts, policies need to account for greater levels of warming than are currently expected, a group of experts has warned. To help policymakers and investors understand the discrepancy between climate projections and policy outcomes, a team from the Institute and Faculty of Actuaries (IFoA) and the University of Exeter have published a tool called the Planetary Solvency Risk Dashboard. Sandy Trust, a council member of the IFoA, said using a risk-led methodology such as the dashboard could help policymakers “avoid catastrophic impacts”. Jesse Abrams, a researcher at the University of Exeter, said recent global events have reinforced the world’s trajectory towards climate tipping points while extreme weather events are happening sooner than expected. Read more: GreenCB.co/4bSIrf3 #ClimateRisk #ClimateChange

International Energy Agency (IEA) director Fatih Birol calls for investment in existing fossil fuels, even though IEA research says there’s no room for oil, coal and gas in a net-zero economy. Kelly Trout, research director at Oil Change International, said Birol’s comments were referring to near-term investment and not necessarily a full reversal of IEA policy, as demand for oil is expected to plateau by 2030. “There is consistency in the IEA’s modelling time and again that there can be no new oil, gas or coal fields if we want a chance at avoiding reaching the 1.5 degree limit,” she said. Jordi Schröder Bosch, at Positive Money Europe, said it was regrettable that the IEA appears to be reversing its stance and aligning more with investing in fossil fuels. Central banks have tools that they can use to unlock green finance, such as discouraging fossil fuel investments or prioritising green bonds and sustainable assets in their purchases. The European Central Bank, for example, could also issue a green dual interest rate, said Bosch. Meanwhile research from Oil Change International found that rich countries could mobilise over US$5tn a year in climate action if they stopped subsidising fossil fuel companies, made polluters pay for climate damages and changed global financial rules such as forgiving global south debt. Read the full story: https://lnkd.in/gTdtndYh #IEA #FossilFuels #EnergyTransition #ClimateChange

The Federal Reserve Board claims that leaving the Network for Greening the Financial System (NGFS) was 'not driven by politics', but former U.S. Department of the Treasury official Graham Steele says the Trump government's anti-ESG agenda influenced the decision. Read more: GreenCB.co/4byFNe9 #Trump #NGFS #FederalReserve

Do companies really see sustainability reporting as a burden on business? Watch the second episode of Sustainability Omnibus Podcast with Ophélie Mortier, Chief Sustainable Investment Officer at DPAM (Degroof Petercam Asset Management) to find out more. GreenCB.co/4bqrtEx #EUOmnibus #CSRD #CSDDD

If a company issues green bonds, they are more likely to reduce their greenhouse gas emissions, a study from the Bank for International Settlements – BIS found. GreenCB.co/43LjtMh

Do companies really see sustainability reporting as a burden on business? Ophélie Mortier, Chief Sustainable Investment Officer at DPAM, joins our podcasters Simon Nixon and Moriah Costa to look at how the EU omnibus could affect investment strategies, corporate transparency, and Europe’s long-term economic competitiveness. Watch the latest episode now: GreenCB.co/4bqrtEx #EUOmnibus #CSRD #CSDDD