In news According to a Council On Energy, Environment and Water – Centre for Energy Finance (CEEW-CEF) report, Indian renewable energy project developers have raised Rs. 26,300 crore through issuance of green bonds during January to June this year.
About Green Bond
A green bond is a debt instrument, like any other bond, by which investors can finance sustainable assets or projects.
The proceeds of the green bond offering are earmarked for use towards financing ‘green’ projects like electric vehicles, mass rapid transport systems, water and irrigation management, renewable energy etc.
They can be raised either by financial institutions for further lending to green projects, or by the developers directly for investment in their projects.
Benefits of Green Bonds
Positive Impact on Environment
Attracts Investment
Alternative to Bank Loan: Green bonds are also an effective tool in driving down the cost of capital and reducing asset-liability mismatches.
