Source: Business Line
Context: India’s sovereign green bonds, have not received significant green premiums from private investors, affecting the financing of green transition projects, according to the Economic Survey.
- Despite India’s green bond framework being well-rated, there is more capital potential than actual capital flow for energy transition in emerging markets.
- The Survey highlights the need for developed countries to provide more accessible, affordable financial resources in line with UNFCCC and Paris Agreement objectives.
Greenium is defined as the difference in yield between thematic bonds and ordinary bonds of a similar maturity, based on the logic that investors are willing to pay extra for a bond with a sustainable impact.
