Latest news with #SovereignGreenBonds
Mint
04-07-2025
- Business
- Mint
Global financial imbalance hurting climate, development goals: FM Sitharaman
New Delhi: Finance minister Nirmala Sitharaman on Friday flagged persistent asymmetry in global financial flows as a major impediment to sustainable development in the Global South, warning that it continues to stifle long-term investments in clean energy, urban mobility, and climate-resilient infrastructure. Speaking at the New Development Bank's (NDB) Governors Seminar in Rio de Janeiro, Brazil, Sitharaman urged a fundamental rethink of the global financial architecture to better align with the development priorities of emerging and low-income economies. 'The asymmetry in global financial flows deters long-term investment and delays critical progress, especially in renewable energy, urban mobility and climate resilient infrastructure,' she said. 'The result is the widening gap between development potential and the financial realization," she added. Sitharaman also highlighted the complexity of balancing growth and sustainability, particularly in democracies like India where expanding access to housing, healthcare, education, and livelihoods remains a critical imperative. 'The real challenge, therefore, is not choosing between development and sustainability, but designing policies, particularly in partnership with emerging markets and developed economy countries that foster inclusive growth and strengthen sustainable development,' she said. The finance minister added that India is actively aligning its financial system with climate and development goals by deepening its green finance ecosystem. 'India has laid a strong foundation for green finance in recent years—through Sovereign Green Bonds, ESG disclosure mandates, and the proposed taxonomy for climate finance,' Sitharaman said. 'We are building a more resilient, inclusive, and innovation-driven financial architecture that connects capital with climate imperatives.' The finance minister underscored the role of institutions like the New Development Bank in reshaping development finance for the Global South. 'The NDB was set up to bridge a clear gap in the global financial architecture, one that responds to the unique needs of developing economies,' she said. The NDB, formerly the BRICS Development Bank, was established in 2014 by Brazil, Russia, India, China, and South Africa to mobilize funding for infrastructure and sustainable development projects. Headquartered in Shanghai, it serves as a credible alternative to Western-led institutions like the World Bank and the International Monetary Fund. Sitharaman's remarks in Brazil echoed the concerns she raised earlier this week at the 4th International Conference on Financing for Development (FFD4) in Seville, Spain, where she called for urgent reforms to the global financial system, expanded climate finance, and faster sovereign debt restructuring, especially for vulnerable economies. The calls come amid growing alarm over stalled progress on the United Nations' Sustainable Development Goals. The UN estimates a $4 trillion annual shortfall in development financing, severely constraining the ability of countries to invest in essential services and transition toward sustainable, inclusive growth.
The Hindu
04-07-2025
- Business
- The Hindu
‘AI, green finance to redefine banking sector'
Artificial Intelligence (AI) and green finance would be pivotal in redefining India's banking sector said Anand Sinha, Former Deputy Governor, Reserve Bank of India (RBI) in his keynote address at the 15th Annual Banking & Finance Conference organised by IMC Chamber of Commerce and Industry in Mumbai on Friday. He said AI would strengthen digital infrastructure, enhance rural financial inclusion and bolster operational efficiencies across the banking ecosystem. Calling attention to the climate crisis, he highlighted that unchecked climate risks could potentially cost India 3%–10% of its GDP annually by 2100. 'Initiatives such as the Green Hydrogen Mission, National Solar Mission, and issuance of Sovereign Green Bonds are commendable steps,' he added, noting the RBI's proactive regulatory efforts, including the promotion of green loans, climate risk disclosures, and green deposits would help. Sanjaya Mariwala, President, IMC, said to harness India's rapid strides in digital finance, it was important to address the systemic challenges that persists.
