The final framework for India’s sovereign green bonds has been approved by the union minister of finance and corporate affairs.
Key features;
- It outlines the responsibilities of the Indian government as an issuer of green bonds.
- All sovereign green bonds that the Indian government issues are covered by the Framework.
- The performance of the eligible projects is not a requirement for the payment of principal or interest on the issuances made under this Framework.
- Core components as outlined by ICMA (International Capital Market Association)
- Utilization of funds
- Evaluation and selection of projects
- Management of funds
Categories of the Green Bonds
The designation of a project as “green” is based on the following ideas:
- Promotes climate resilience and/or adaptation;
- Promotes energy efficiency in resource usage;
- Lowers carbon emissions and greenhouse gas emissions;
- Values and enhances natural ecosystems and biodiversity, especially in accordance with SDG principles
Based on above, there are nine categories of these bonds.
- Renewable energy
- Energy efficiency
- Clean transportation
- Climate change adaptation
- Sustainable water and waste management
- Pollution prevention and control
- Green buildings
- Sustainable management of living natural resources and land use
- Terrestrial and aquatic biodiversity conservation
Constitution of the Green Finance Working Committee (GFWC)
The Chief Economic Adviser and representatives from the implementing agencies serve as the leadership of the GFWC, which was established to supervise and approve important decisions regarding the issuing of sovereign green bonds.
Commitments and Stated Policies: India
Taking into account its need for development, India adopted an ambitious Nationally Determined Contribution (NDC) under the Paris Agreement.
Panchamrit of India’s climate action;
- Reach 500GW of non-fossil energy capacity by 2030.
- Source 50% of its energy needs from renewable sources by 2030.
- Cut projected carbon emissions by 1 billion tonnes from now to 2030.
- Reduce the economy’s carbon intensity by 45% from 2005 levels by 2030.
- Achieving net zero emissions by 2070 as the goal.