Q. With reference to Green Municipal Bonds (GMB), consider the following statements:
1.Green Municipal Bonds are non-convertible debt instruments issued by municipal bodies to finance environmentally sustainable projects.
2.Only state governments are constitutionally empowered to issue Green Municipal Bonds under Article 243W of the Indian Constitution.
3.Ghaziabad Nagar Nigam was the first urban local body in India to issue a certified Green Municipal Bond.
Which of the statements given above is/are correct?
Quarterly-SFG-Jan-to-March
Red Book

[A] 1 and 3 only

[B] 2 and 3 only

[C] 1 only

[D] 1, 2 and 3

Answer: A
Notes:

Explanation:

  • Statement 1 is correct: Green Municipal Bonds (GMBs) are a type of non-convertible debt security issued by municipal bodies to fund climate-friendly projects such as clean energy, water management, and pollution control.
  • Statement 2 is incorrect: Article 243W empowers municipal bodies, not state governments, with functions related to urban planning and services. Thus, municipal corporations can issue such bonds, not just state governments.
  • Statement 3 is correct: Ghaziabad Nagar Nigam made history by issuing India’s first certified Green Municipal Bond, marking a significant step toward sustainable urban financing.

Source– PIB

Discover more from Free UPSC IAS Preparation Syllabus and Materials For Aspirants

Subscribe to get the latest posts sent to your email.

Blog
Academy
Community