Sovereign Green Bonds


Preliminary   > Environment and Ecology   >   Miscellaneous   >   National initiatives

Why in news?

  • Government of India (GoI) has developed a framework for Sovereign Green bonds (SGrB).

About Sovereign Green Bonds:

  • Green bonds are an instrument to raise money, at a lower cost than regular bonds, for environment-friendly projects.
  • The concept goes back only 15 years when a group of Swedish pension funds wanted to invest in green projects as climate worries grew.
  • A sovereign green bond is a debt instrument issued by the central or state government to borrow money from investors with the commitment that the mobilized fund will be spent on climate or eco-system related activities.

Add ons:

  • Yes Bank was the first Indian Bank to issue Green Infrastructure Bonds (GIBs) in India in 2015.
  • Corporates have been issuing green bonds in India for a few years, but the country’s global share stood at just 1% in the first half of 2022.


Consider the following statements:

1. India is the first country in the world to issue sovereign green bonds

2. In India, private players cannot issue green bonds

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2