EMERGING GREEN BOND MARKET - A STUDY FROM INDIAN PERSPECTIVE

Abstract

In the year 2008 The World Bank has come with the initiative to issue Green Bond through the strategic framework for development and climate change for the institutional investors and since then there is a rapid growth of use of Green Bonds for climate projects seen on the global basis. Since the year 2008 World Bank issued approximately USD 19 billion equivalent in Green Bonds through over 220 bonds in 28 currencies. After the Paris Agreement on climate change entered into force on November 2016, 196 countries committed to reduce greenhouse gas emissions and for that significant amount of finance is needed. Presently green bond market is potentially growing in the fields of renewable energy, energy efficiency, clean transportation and waste management. Green bond market is significantly growing in the light of the global commitment to shift to a green and low carbon economy. Presently green bond market is also significantly growing in India. India’s 2030 agenda of climate target is to reduce the economic emission intensity by 45% as compared to the year 2005. Also the country is increasing the use of non-fossil-fuel based energy resources. In this context India needs climate finance to hold environment friendly projects. The current study is related to Green Bond Market in India, the opportunities and challenges of the issuance of Green Bonds in India. The study also aims to discuss the future aspects of Green Bonds in India.