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The Union Budget for which of the following years announced the issue of Sovereign Green Bonds to reduce the carbon intensity of the economy?
Explanation
The Union Budget 2022-23, presented by Finance Minister Nirmala Sitharaman, announced the issuance of Sovereign Green Bonds as part of the government's overall market borrowing program [3]. The primary objective of these bonds is to mobilize resources for green infrastructure and public sector projects that assist in reducing the carbon intensity of the Indian economy [1]. This initiative aligns with India's commitments under the 'Panchamrit' targets and the Paris Agreement to achieve net-zero emissions by 2070 [3]. Following the announcement, the first tranche of these bonds was issued in January 2023, followed by a second tranche in February 2023 [4]. These bonds are classified as 'specified securities' under the Fully Accessible Route (FAR), allowing for significant foreign investment to support sustainable development.
Sources
- [1] https://dea.gov.in/files/policy_and_guidelines_document/FrameworkSovereignGreenBonds.pdf
- [3] https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1885728
- [4] https://blogs.worldbank.org/en/climatechange/india-incorporates-green-bonds-its-climate-finance-strategy