Change set
Pick exam & year, then Go.
Question map
Consider the following statements related to 'Sovereign Green Bonds':
1. Union Budget 2021-22 announced the issue of these bonds
2. The Government of India has approved a Sovereign Green Bonds Framework
3. These bonds are meant to be issued for mobilizing resources for green projects
4. These bonds are financial instruments that generate proceeds for investment in environmentally sustainable and climate suitable projects
How many of the above statements are correct?
Explanation
Statement 1 is incorrect. The issuance of Sovereign Green Bonds (SGrBs) was announced in the Union Budget 2022-23 by the Union Finance Minister, not in the 2021-22 budget.
Statement 2 is correct. The Government of India approved the Sovereign Green Bond Framework in November 2022, which sets out the obligations of the Government as an issuer of these bonds.
Statement 3 is correct. The primary objective of issuing these bonds is to mobilize resources for green infrastructure and projects that contribute to reducing the carbon intensity of the economy.
Statement 4 is correct. Green bonds are fixed-income financial instruments specifically designed to raise money for climate and environmental projects. The proceeds are strictly earmarked for projects that are environmentally sustainable.
Since statements 2, 3, and 4 are correct, the total number of correct statements is three.