New Delhi, March 15 -- Reserve Bank of India (RBI) Governor Sanjay Malhotra has announced that India is spearheading initiatives in renewable energy financing by incorporating such projects under priority sector lending, a strategic move to accelerate the nation's transition to a low-carbon economy in its ongoing battle against climate change.

Speaking at a policy seminar focused on Climate Change Risks and Finance, Malhotra highlighted the divergent approaches between central banks in advanced economies and those in emerging markets.

He noted that while advanced economy central banks typically adhere to asset-neutral policies, central banks in emerging markets and developing economies have implemented directed lending strategies to cha...