{"id":7671,"date":"2022-11-10T02:10:50","date_gmt":"2022-11-09T20:40:50","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=7671"},"modified":"2025-03-28T22:10:06","modified_gmt":"2025-03-28T16:40:06","slug":"sovereign-green-bonds-framework","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/sovereign-green-bonds-framework\/","title":{"rendered":"Sovereign Green Bonds Framework"},"content":{"rendered":"<h2><strong>About Sovereign Green Bonds Framework:<\/strong><\/h2>\n<ul>\n<li><strong>Green bonds are financial instruments that generate funds for investment in environmentally sustainable and climate-suitable projects.<\/strong><\/li>\n<li>Also, green bonds command a relatively lower cost of capital compared to regular bonds.<\/li>\n<li>This approval will further strengthen India\u2019s commitment towards its\u00a0<strong>Nationally Determined Contribution targets, adopted under the Paris Agreement.<\/strong>\u00a0It will help in attracting global and domestic investments in eligible green projects.<\/li>\n<li>The proceeds generated from the issuance of such bonds will be deployed in\u00a0<strong>Public Sector projects which help in reducing carbon intensity of the economy.<\/strong><\/li>\n<li>The proceeds will be deposited to the\u00a0<strong>Consolidated Fund of India (CFI)<\/strong>\u00a0in line with the regular treasury policy, and then funds from the CFI will be made available for eligible green projects.<\/li>\n<li>Every year, the\u00a0<strong>finance ministry will inform RBI\u00a0<\/strong>about the spending on green projects for which the funds raised through these bonds will be used.<\/li>\n<li>The framework comes close in the footsteps of India\u2019s commitments under\u00a0<strong>\u201cPanchamrit\u201d<\/strong>\u00a0as elucidated by Prime Minister Narendra Modi at\u00a0<strong>COP26 at Glasgow<\/strong>\u00a0in November 2021.<\/li>\n<\/ul>\n<h3><strong>Exception:<\/strong><\/h3>\n<ul>\n<li>The government has excluded nuclear power and large hydropower projects of over 25 MW from the ambit of investments to be made through the issuance of sovereign green bonds.<\/li>\n<li>All fossil fuel-related projects have been kept out of the framework, along with biomass-based renewable energy projects that rely on feedstock from \u2018protected areas\u2019.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/vajiramandravi.s3.us-east-1.amazonaws.com\/media\/editor_images\/2022\/11\/10\/10\/34\/17\/636c8651934e9605a49ef098_OI.PNG\" alt=\"\" \/><\/p>\n<h3><strong>Medium Green rating:<\/strong><\/h3>\n<ul>\n<li>The framework has been rated \u2018Medium Green\u2019, with a \u201cGood\u201d governance score by a Norway-based independent second opinion provider CICERO. The \u2018Medium Green\u2019 rating is assigned \u2018to projects and solutions that represent significant steps towards the long-term vision, but are not quite there yet\u2019.<\/li>\n<\/ul>\n<h3><strong>Green Finance Working Committee (GFWC):<\/strong><\/h3>\n<ul>\n<li>The Union Finance Ministry has constituted a Green Finance Working Committee (GFWC) with representation from relevant Ministries and chaired by Chief Economic Adviser, Government of India.<\/li>\n<li><strong>The committee will meet at least twice a year to support Ministry of Finance with selection and evaluation of projects.<\/strong><\/li>\n<li>The allocation of the proceeds will be reviewed in a time-bound manner by the GFWC to ensure that the allocation of proceeds is completed\u00a0<strong>within 24 months from the date of issuance.<\/strong><\/li>\n<\/ul>\n<hr \/>\n<p><strong>Source :\u00a0<\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/economy\/finmin-clears-framework-for-sovereign-green-bonds-8259560\/\" target=\"_blank\" rel=\"nofollow noopener\">Indian Express<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A debt security that is issued to raise money for initiatives that are relevant to the environment.<\/p>\n","protected":false},"author":5,"featured_media":7672,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-7671","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/7671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=7671"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/7671\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/7672"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=7671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=7671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=7671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}