The Central Bank of India has joined the Partnership for Carbon Accounting Financials (PCAF), a global body that sets standards for measuring and disclosing the greenhouse gas emissions linked to loans and investments. The move aligns the central bank with a methodology already used by hundreds of financial institutions worldwide to report financed emissions. It also puts pressure on Indian banks to adopt consistent carbon accounting rather than relying on internal estimates. PCAF's framework covers major asset classes including listed equity, corporate loans, and real estate. For India, joining could improve the quality of climate data available to regulators and investors, making it easier to compare transition risk across banks. The practical impact will depend on how quickly domestic lenders publish PCAF-aligned figures and whether those numbers are verified. Still, a central bank endorsing a common standard is a meaningful step toward treating carbon risk as a measurable financial risk.
