Topic: Conservation, environmental pollution and degradation, environmental impact assessment.
4. What are Green Bonds? In what way can they prove to be a gateway for Environment-friendly Investment in the country? Discuss the merits and demerits. (250 words)
Reference: Financial Express
Why the question:
The article explains that the Centre, states must tap into green bonds.
Key Demand of the question:
Discuss the concept of Green bonds and explain in what way they can prove to be a gateway for Environment-friendly Investment in the country.
Directive:
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Start with the definition of Green Bonds.
Body:
A green bond is a debt instrument with which capital is being raised to fund ‘green’ projects, which typically include those relating to renewable energy, clean transportation, sustainable water management etc.
Today, green bonds help companies tap money from specialized funds focused on climate change. As of now, 120 institutional investors from nine countries have joined the Institutional Investors’ Group on Climate Change. Also, over 1,500 institutions are signatories to the United Nations’ Principles for Responsible Investments.
Sovereign funds like GIC, Abu Dhabi Investment Authority, and multilateral agencies such as International Monetary Fund, International Finance Corp. and Asian Development Bank, among others, are proactively channeling funds to invest in green sustainable projects.
These global institutions believe in growing responsibly and, hence, are committing funds to mitigate the impact of climate change and avail business opportunities associated with the transition to a lower-carbon society and economy.
Discuss the merits and demerits.
Conclusion:
Conclude with way forward.
