Sebi notifies stronger framework for green bonds; introduces concept of blue, yellow bonds ..

Vaibhav Pratap Singh

Notable because

India needs over USD 10 trillion in investments sourced from conventional and non-conventional pools of capital to meet its 2070 net zero targets. Defining the various subcategories of green, social, and sustainable (GSS) bonds is essential to building domestic markets for such securities. These bonds can play a part in financing India’s Nationally Determined Contribution (NDC) targets and beyond, especially in sectors such as water and others in their infancy.

What to look out for in the months ahead

Who will issue and subscribe to these subcategories of green bonds? 

What features, sizes, and benchmarks can be created for each subcategory? 

The role and usage of these securities in the process of building up national green infrastructure will be interesting to note.