India RBI chief says urgent need to boost green finance flows to emerging markets
MUMBAI(Reuters) – There is an urgent need to increase green finance flows to emerging market economies, India’s central bank chief said on Friday.
In closing remarks at a G20 finance event in Mumbai, Reserve Bank of India (RBI) Governor Shaktikanta Das said investment needs for a smooth green transition are large, but actual financial flows to green projects are “by and large, concentrated in advanced economies.”
Since such flows are dependent on ESG ratings, it is important that green ratings reflected the actual environmental impact of a project to avoid ‘greenwashing’, Das said.
India currently holds the presidency of the G20 and will host leaders of these countries between September 9-10.
Das said a multilateral debt relief program providing assistance to low-income countries with high debt levels needs to be considered on a priority basis.
“This initiative can be designed with a clear focus on utilisation of debt relief for sustainable development projects and poverty reduction efforts,” he said. “Instruments such as debt-for-development swaps and green debt relief programs could be employed.”
Reporting by Swati Bhat and Siddhi Nayak, writing by Shilpa Jamkhandikar and Ira Dugal, editing by Christina Fincher