Public Analysis of Investments and Sustainability Evaluation
India’s Green Bonds Framework Comes with A Lot of Promise, But Also Grey Areas
The framework for India’s sovereign green bonds, which aims to spur investments in clean technologies while minimising risks for investors, addresses the difficulty of raising capital but might be introducing new problems in doing so India released the framework for its Sovereign Green Bonds scheme last month. The objective of the scheme, announced first by finance minister Nirmala Sitharaman in the 2022 budget speech, is to fund public sector projects with climate action merits. The scheme has been hailed as a “commendable step”, but comes with caveats. The framework not only includes CNG-based public transport as a “green” project, there is a wide range of projects that are listed as eligible for green loans, but it is not as easy to establish their green credentials. But does the framework include robust project selection and verification processes that have a basis in science and align with globally accepted practices, rather than being determined by financial institutions, bureaucracy and political interests? Read More
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