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    Question

    A bond which is issued to finance projects that

    generate environmental benefits and reduce carbon intensity are known as __________ ?
    A ESG Bonds Correct Answer Incorrect Answer
    B Green Bonds Correct Answer Incorrect Answer
    C Environment bonds Correct Answer Incorrect Answer
    D Carbon Bonds Correct Answer Incorrect Answer
    E Special Bonds Correct Answer Incorrect Answer

    Solution

    A Green Bond is a type of a bond which is issued to finance projects that generate environmental benefits, such as renewable energy, energy efficiency, clean transportation and sustainable water projects, among others. A Green Bond, under the ‘ Disclosure Requirements for Issuance and Listing of Green Debt Securities’ circular by SEBI is defined as debt securities which are to be utilised for projects and/or assets falling under any of the following categories: ·       Renewable and sustainable energy including wind, solar, bioenergy, other sources of energy which use clean technology, etc. ·       Clean transportation including mass/public transportation, etc. ·       Sustainable water management including clean and/or drinking water, water recycling, etc. ·       Climate change adaptation. ·       Energy efficiency including efficient and green buildings, etc. ·       Sustainable waste management including recycling, waste to energy, efficient disposal of wastage, etc. ·       Sustainable land use including sustainable forestry and agriculture, afforestation, etc. ·       Biodiversity conservation and any other category as maybe notified by SEBI.   Note - In the Budget 2022-23, the government has stated that Sovereign Green Bonds will be issued for mobilizing resources for green infrastructure that will help in reducing the carbon intensity of the economy. 

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