Green Bonds
- Category
Economy
- Published
20th Apr, 2024
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Context
Government of India is likely to issue 20000 cr- 25000 cr of green bonds for which it has allowed Foreign institutional Investors (FIIs) to invest in it.
About
- Green bonds are a type of fixed-income investment used to fund projects with a positive environmental impact.
- Like traditional bonds, green bonds offer investors a stated return and a promise to use the proceeds to finance or refinance sustainable projects, either in part or whole.
- They follow the Green Bond Principles stated by the International Capital Market Association (ICMA).
- Issues: Transparency and reporting, some bonds may have lower liquidity than traditional ones, greenwashing.
Blue Bonds
- Blue bonds are sustainability bonds used to finance projects that protect the ocean and related ecosystems.
- They might 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.
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