The potential of green bonds can be considered by the Union government as well the states to mitigate the impacts of climate change in the country. Elaborate (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 4 years
KEY POINTS
· Green bonds are debt instruments used by governments and their entities, international organisations, private sector to raise money for projects that contribute to climate mitigation.
· Government green bond issues are backed by public assets that are either contributing to low-carbon development or building capacity to cope with climate change.
· Such assets include investment in watersheds, early warning systems for disaster risk management, large renewable energy (RE) projects, clean transportation, etc.
· Issuance of green State Development Loans can contribute to addressing this issue while attracting investments into projects which are needed to build climate-resilience at the local level.
· Covid-19 has made their fiscal position extremely strained, increasing their reliance on market borrowing for discretionary spending on climate-related interventions.
· Green SDLs can help state governments attract diverse investors who are willing to support them in their efforts to reduce such vulnerabilities, and possibly offer better pricing.
· Green bond issues will also help raise their profile among climate-responsive investors.
· Public assets and expenditure made by state governments play a pivotal role in supporting national climate commitments and building resilience of communities directly impacted by climate change.
Saravanan 4 years
Pls review
IAS Parliament 4 years
Good attempt. Keep Writing.
