| Syllabus: GS-III, Subject: Economy, Topic: Financial markets, Issue: Green Bonds. |
Context: India plans to increase the sale of green bonds to finance sustainable infrastructure projects this fiscal year.
Synopsis:
- Demand for sustainable bonds is high in the market, leading to increased borrowing through green bond instruments.
- Including Indian government bonds in international indices has attracted foreign portfolio investors, boosting interest in Indian government securities.
Prelims Connect (Terminology in news):
| Green Bonds:
● Green bonds fund eco-friendly projects like renewable energy. ● Introduced by development banks in 2007, expanded to include corporates in 2013. ● The Securities and Exchange Board of India regulates issuance for transparency. ● Benefits include enhanced issuer reputation and cost-effective capital. ● Crucial for financing sunrise sectors like renewable energy, promoting sustainable growth. |
