News: According to Economic Survey 2019-20, India has the Second largest Emerging Green Bond Market after China. India has also joined the International Platform on Sustainable Finance (IPSF) in 2019 to scale up environmentally sustainable investments.
- These are fixed-income financial instruments issued for funding of specific projects which have positive environmental and climate benefits.
- Yes Bank was the first Indian Bank to issue Green Infrastructure Bonds (GIBs) in India in 2015.
Avenues where these funds can be invested:
Securities and Exchange Board of India (SEBI) has allocated eight high-level categories as “green projects”—
- renewable energy,
- clean transportation,
- sustainable water management,
- climate-change adaptation,
- energy efficiency,
- sustainable waste management,
- sustainable land use,
- biodiversity conservation
International Platform on Sustainable Finance (IPSF)
- Launched in 2019 by Argentina, Canada, Chile, China, India, Kenya, Morocco and the European Union
- Aim: To scale up the mobilization of private capital towards environmentally sustainable investments
o promote best practices in environmentally sustainable finance;
o Identify barriers and opportunities to scale up environmentally sustainable finance internationally;
o Enhance international coordination on environmentally sustainable finance issues.