Consider the following statements related to ‘Sovereign Green Bonds’:

Consider the following statements related to ‘Sovereign Green Bonds’:

  • 1. Union Budget 2021-22 announced the issue of these bonds
  • 2. The Government of India has approved a Sovereign Green Bonds Framework
  • 3. These bonds are meant to be issued for mobilizing resources for green projects
  • 4. These bonds are financial instruments that generate proceeds for investment in environmentally sustainable and climate suitable projects

How many of the above statements are correct?

1
2
3
4
This question was previously asked in
UPSC CISF-AC-EXE – 2023
Three of the statements regarding Sovereign Green Bonds are correct.
Statement 1 is incorrect: The issue of Sovereign Green Bonds by the Government of India was announced in the Union Budget 2022-23, not 2021-22.
Statement 2 is correct: The Government of India approved a Sovereign Green Bonds Framework in late 2022 to guide the issuance of these bonds.
Statement 3 is correct: The purpose of issuing Sovereign Green Bonds is to mobilize resources specifically for public sector projects that help in reducing carbon intensity.
Statement 4 is correct: Sovereign Green Bonds are defined as financial instruments used to generate proceeds for investment in environmentally sustainable and climate-suitable projects. This is consistent with the purpose mentioned in statement 3.
The Sovereign Green Bond Framework was approved in November 2022, detailing the eligible green projects (e.g., renewable energy, energy efficiency, clean transportation, climate change adaptation, sustainable water/waste management) and outlining the process for selection, management of proceeds, and reporting. The first tranche of Sovereign Green Bonds was issued by the Reserve Bank of India on behalf of the government in January 2023.
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