International Finance Corporation (IFC) released Green and Social Bond Impact Report 2023 | Current Affairs | Vision IAS
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ESC
  • 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 

  • HQ: Washington, DC (USA).
  • Established in 1956, it is a member of World Bank Group and largest global development institution focused on private sector in developing countries
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