- February 2, 2022
- Posted by: Bastion team
- Category: World News
Finance Minister Nirmala Sitharaman on Tuesday said that the government would issue sovereign Green Bonds for mobilising resources for green infrastructure, an announcement lapped up by the environmentalists.
“As a part of the government’s overall market borrowings in 2022-23, sovereign Green Bonds will be issued for mobilising resources for green infrastructure. The proceeds will be deployed in public sector projects, which help in reducing the carbon intensity of the economy,” Sitharaman said. She, however, did not give any details.
“The budget proposal to issue sovereign green bonds has several benefits, principal among which is signalling the country’s seriousness in pursuing climate action. India will now join a select group of countries, primarily European, which have issued such bonds,” said Gagan Sidhu, Director, Council on Energy, Environment and Water-Centre for Energy Finance (CEEW-CEF),
“We can also expect this move to catalyse the development of the domestic corporate green bond market. Green bond issuances by Indian companies in the overseas debt capital markets have considerably lagged so far. If sovereign green bonds price at lower yields versus their non-green counterparts, it will also provide an added signal for the private sector to direct their capital towards green investments,” Sidhu said.
This critical move also ties in with the capital expenditure push—a vital feature of this budget—and…