RBI Report on Currency and Finance

On May 3, the Reserve Bank of India (RBI) has 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,’ which reflects India’s focus on reducing carbon emissions and promoting sustainable growth.

Dimensions of climate change

The report addresses four key aspects of climate change, encompassing its exceptional size and rapidity, macroeconomic impacts, financial stability implications, and strategies to reduce climate risks.

India’s green financing requirement and net-zero target

India’s green financing requirement is estimated to be at least 2.5% of gross domestic product (GDP) annually till 2030. The report highlights that India has embarked on a targeted and time-bound climate action plan, and currently ranks the best amongst G-20 countries as per the Climate Change Performance Index, 2023. India’s net-zero target year is 2070, and for this, the country would require an accelerated reduction in the energy intensity of GDP by around 5% annually and a significant improvement in its energy mix in favor of renewables to around 80% by 2070-71.

Balanced policy intervention needed

The RBI stressed the need for a well-rounded policy intervention, ensuring progress across all policy levers, to enable India to accomplish its green transition targets by 2030 and, in the future, attain the net-zero goal by 2070.

Month: Current Affairs - May, 2023

Category: Reports & Indexes Current Affairs