- IFC launched Green Bond Program in 2010 to unlock investment for private sector eligible projects that seek to mitigate climate change and Social Bond Program in 2017.
- Key Highlights
- $2 billion raised through Green bond is expected to reduce 3.3 million metric tons of carbon dioxide equivalent per year.
- $1.2 billion raised through Social bonds will cater sectors like Agribusiness, Gender finance, Education, etc.
- About Green Bonds
- Debt securities designated to finance environment-friendly projects like Sustainable Water and Waste Management, Green Buildings, Pollution control etc.
- In 2022, Ministry of Finance approved India’s First Sovereign Green Bonds (SGBs) Framework which excludes projects like nuclear power generation, landfill projects, hydropower plants larger than 25 Megawatt etc.
- India’s First Green Bond was issued by Yes Bank Ltd in 2015.
- In 2023, India issued first tranche of its first SGBs worth Rs. 80 billion.
- About Social bonds
- Financial instrument issued by governments; corporations to raise funds for projects to address social issues like affordable housing, healthcare etc. to benefit vulnerable populations.
- In 2023, National Bank for Agriculture and Rural Development (NABARD) raises more than Rs. 1000 crore via social bonds.
International Finance Corporation
|