- Green bonds are bonds issued by governments, companies, or multilateral organizations.
- They are issued to fund projects that produce positive impacts on the environment and on climate change.
- Green bonds offer fixed-income payments to the investors.
- Greenium or Green Premium is the savings that accrue on coupon payments.
- Public debts for projects that are intended to accelerate a low-carbon economy in India.
- The framework includes investments in solar and wind energy; biomass; hydro energy; urban mass transportation; green buildings; and pollution prevention and control programs.
Green Bonds and Standard Bonds
- Green bonds, introduced in 2007, are debt instruments which aims to finance projects positively impacting the climate and environment.
- The issuers can be countries, companies, and multilateral organizations as well.
- Examples of green projects include renewable energy, clean transportation, and green buildings.
- Issuers must provide information about the project and its expected climate and environmental impacts.
- Sovereign green bonds can benefit the Indian economy by promoting environment-friendly public sector projects and achieving government targets like 175 gigawatt of renewable energy capacity by 2022 and net zero carbon emissions by 2070.
