Sovereign Green Bonds Framework of India
1. The Sovereign Green Bonds Framework of India follows the pledges taken by India at the Conference of Parties (COP) 26 held in Glasgow in November 2021. These pledges were known as âPanchamritâ. Using these pledges, the Nationally Determined Contribution (NDC) targets set by the Indian government at the Paris Agreement, would be triggered.
2. The Green Finance Working Committee (GFWC) was established to look into different matters associated with issuing the Sovereign Green bonds. The framework has obtained a governance score of âGoodâ and CICERO (second opinion provider) from Norway has rated this framework âMedium Greenâ. If a project or idea receives a âMedium Greenâ classification, this means that crucial progress has been attained toward the long-term objective, but the final objective is yet to be achieved.
3. The Government of India has proposed nine categories that could be financed using the proceedings of the Sovereign green bonds: Renewable energy, Clean Transportation, Energy efficiency, Sustainable water and waste management, Climate change adaptation, Sustainable management of living natural resources, and land use, Terrestrial and aquatic biodiversity conservation, Green buildings, and Pollution prevention and control.
4. The framework of India lists out the investments made in solar, wind, hydro, and biomass energy projects, urban transportation projects (for example metro rail), pollution prevention and control projects, and green buildings.
5. The fossil fuel-related projects have not been included in the framework along with the biomass-related renewable energy projects that is based on the feedstock from protected areas. Another exclusion is linked to projects related to nuclear power generation and direct waste incineration.
6. The expenditure allowed is limited to the amount of government spending which have taken place within one year from the date of issuance. Further, within 24 months of issuance, the proceedings must be allocated to projects. Somehow, if an eligible green project is cancelled or postponed, the proceedings will be allocated to another eligible green project.
Contact Us