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Economy
Mahesh

05/06/22 11:14 AM IST

Green Bond

In News 
  • India is likely to face an uphill battle if it goes ahead with its first sovereign green bond sale as it aims to issue the securities in rupees, putting off most overseas investors.
Green Bond 
  • A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects.
  • These bonds are typically asset-linked and backed by the issuing entity’s balance sheet, so they usually carry the same credit rating as their issuers’ other debt obligations.​
  • Green bonds may come with tax incentives to enhance their attractiveness to investors.
  • The World Bank is a major issuer of green bonds.
Green Bonds Vs Blue Bonds 
  • Blue bonds are sustainability bonds to finance projects that protect the ocean and related ecosystems.
  • This can include projects to support sustainable fisheries, protection of coral reefs and other fragile ecosystems, or reducing pollution and acidification.
  • All blue bonds are green bonds, but not all green bonds are blue bonds.
Source- The Wire

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