Q192
Indian EconomyMoney, Banking & Financial Institutions
Financial instruments that generate proceeds for investment in environmentally sustainable projects are called
- a.Green bonds
- b.Nature bonds
- c.Low Emission bonds
- d.Environment bonds
Answer: (A) Green bonds
Green bonds are debt instruments whose proceeds are earmarked for environmentally sustainable projects such as renewable energy, clean transport and energy efficiency. The first was issued by the European Investment Bank in 2007 and the World Bank followed in 2008; in India, Yes Bank issued the first green bond in 2015, and the Government of India issued its first Sovereign Green Bonds worth ₹16,000 crore in January–February 2023. "Nature", "low emission" and "environment" bonds are not standard terms. Related instruments: blue bonds for ocean projects, social bonds, and masala bonds (rupee-denominated bonds issued abroad).