Govt. to issue green bonds only if the market pays a premium |ForumIAS

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News: The Union government will raise Rs 20000 crore through sovereign green bond, during second half of 2024-25, only if market is willing to pay the green premium.

1. Sovereign Green Bonds (SGB): They are government debt instruments that are issued to finance environmentally sustainable projects.

2. Unlike the traditional bonds, the funds raised from these bonds are exclusively dedicated to green causes.

3. India’s Framework for Sovereign Green Bond was released in 2022.

4. Greenium: It is the difference between the return investor receives on a green bond and a similar conventional bond. It is also called green premium.

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By prashant shekhar

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS