 "What is Sovereign Green Bond and how can it benefit investors? Details here")
On 9 November, 2022, the final Sovereign Green Bonds framework for India was approved by Finance Minister Nirmala Sitharaman. Green bonds are similar to other government bonds, with the exception of the goal of using the funds. A green bond is a type of debt product designed to finance or re-finance initiatives that benefit the environment and/or the climate. In addition to supporting India’s attempts to shift to more sustainable sources of energy, green infrastructure projects involving renewable energy will be able to access funding thanks to green bonds. The only notable distinction between green bonds and regular bonds is that the money raised from investors is only used to support programs that have a positive impact on the environment, such as renewable energy, which in turn will make significant contributions to sustainability and the planet. According to S Ravi, former BSE chairman and the founder & Managing Partner of Ravi Rajan & Co, green bonds can offer plenty of benefits to investors. They are mentioned below:
- Depending on the issuer and the jurisdiction, tax incentives may include tax credits and tax exemptions
- Facilitating direct investment in initiatives to enhance more sustainable ventures
- Increased accountability and transparency regarding the use and management of revenue, which will lead to the creation of a new risk management tool
- Comparable financial gains plus benefits to society and the environment.
A study that linked human activity to global warming was published in 2007 by the Intergovernmental Panel on Climate Change (IPCC), a division of the United Nations that focuses on climate change. It prompted Swedish pension funds to think about supporting environmentally friendly businesses. The World Bank issued the first-ever green bond in 2008 in response to the rising demand. The green bond Market has seen an amazing surge ever since its introduction. The first quarter of 2022 saw a total issuance of US$116 billion in green bonds, making them the most widely used sustainability, social, and bond type among issuers globally. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook , Twitter and Instagram .