Q. Consider the following statements regarding “Green Bonds”:
1. The proceeds from green bonds are ear-marked to finance green projects.
2. India’s First Green Bond was issued by SEBI in 2015.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Green bonds are debt instruments issued by financial, non-financial or public entities where the proceeds are ‘ear-marked’ for use towards financing ‘green’ projects. 

  • India’s First Green Bond was issued by Yes Bank Ltd in 2015.  
  • In 2016, India became second country (after China) to provide national level guidelines for Green bonds, issued by SEBI.  
  • According to the 2019-20 Economic Survey, India has the second largest green bond market among emerging economies after China.  
  • India has issued $10.2 billion of green bonds in the first half of 2019.  
  • India’s first listed Green Bond on ‘India INX’ issued by Indian Railway Finance Corporation. 

Source: The Hindu