With reference to Blue Bonds, consider the following statements: 1. Blue bonds are debt instruments through which funds are raised specifically for projects that support the sustainable use and conservation of marine and ocean resources. 2. Unlike green bonds, blue bonds can finance only projects related to marine biodiversity conservation and cannot be used for activities such as sustainable fisheries, coastal infrastructure or wastewater management. Which of the statements given above is/are correct? |ForumIAS

Q. With reference to Blue Bonds, consider the following statements:
1.Blue bonds are debt instruments through which funds are raised specifically for projects that support the sustainable use and conservation of marine and ocean resources.
2.Unlike green bonds, blue bonds can finance only projects related to marine biodiversity conservation and cannot be used for activities such as sustainable fisheries, coastal infrastructure or wastewater management.
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

Notes:

Explanation: 1 only

Statement 1 is correct: Blue bonds are thematic debt instruments designed to mobilise capital for ocean and marine-related sustainable development, including marine conservation and sustainable use of ocean resources.

Statement 2 is incorrect: Blue bonds can finance a broader range of ocean-related activities, such as sustainable fisheries, marine pollution reduction, wastewater management, coastal resilience and sustainable coastal infrastructure, depending on the bond framework.

Source: BS

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