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Green Bonds and Blue Bonds - Invest in Sustainable Future



  Aug 04, 2023

Green Bonds and Blue Bonds


What are green bonds ?

Green bonds are financial instruments that are specifically used to fund environmentally friendly projects and initiatives. They are issued by governments, municipalities, corporations, or other organizations to raise capital for projects that have positive environmental impacts. (Inke proceeds ko exclusively environmentally sustainable projects ke liye use kiya jata hai jaise renewable energy development, energy efficiency improvements, sustainable agriculture, waste management, energy efficiency.)

The proceeds from green bonds are exclusively used for projects such as renewable energy development, energy efficiency improvements, sustainable agriculture, waste management, energy efficiency and other environmentally sustainable activities.
 

Has the government of India issued green bonds?

In 2022-2023, Government of India issued sovereign green bonds worth about USD 2 billion US dollars from the domestic market. Some will mature in 2028 and others in 2033. (Inka sabze bada advantage hai ki interest rates thode kam hote hain kyunki ye scoial causes ko fund karne ke liye hain)

The advantage with the green bonds is that the interest rate is marginally less as they are for a social cause.
 

What are GSS Plus bonds?

GSS Plus bonds, also known as Green, Social, and Sustainability bonds, are financial instruments that encompass environmental, social, and governance goals. They are similar to ESG (Environmental, Social, and Governance) bonds. Indian companies raised nearly USD 7 billion through ESG and Green bonds in 2021, (Aur ye bonds foreign stock exchanges pe listed hain) and these bonds are listed on foreign stock exchanges.
 

What are blue bonds?

Blue bonds are financial instruments that raise debt to support sustainable projects and initiatives related to the protection and restoration of marine ecosystems, sustainable fisheries, climate change impacts on oceans, and coastal resilience. Blue bonds play a crucial role in funding projects that promote the conservation and sustainable use of marine resources while benefiting coastal communities.
 

Have blue bonds been issued in India?

No, blue bonds have not been issued in India yet. However, a report on blue bonds has been prepared by Niti Aayog and submitted to SEBI in 2023.
 

What is the scope of blue bonds in India?

At present, the blue economy comprises 4.1 per cent of India’s economy.(India me blue bonds ke deployment ke liye kafi scope hai.)

India has a 7,500 kilometre-long coastline and 14,500 kilometres of navigable inland waterways. the development of the blue economy can serve as a growth catalyst.
Many aspects of the blue economy will benefit from blue bonds such as oceanic resource mining, sustainable fishing, national offshore wind energy policy and in the area of blue flag beach eco-tourism model.

What is the blue flag beach eco-tourism model?

The Blue Flag is a certification by the Foundation for Environmental Education (FEE). Blue Flag means that the beach meets the highest level of environmental and safety standards. It assures tourists of clean and hygienic bathing water facilities at a particular beach.


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