Green bonds likely to be issued in Jan-March quarter, government tells Parliament

Green bonds are financial instruments that generate proceeds for investment in environmentally sustainable and climate-suitable projects.

The sovereign green bonds are likely to be issued during January-March 2023, Union minister of state for Finance Pankaj Chaudhary told the Rajya Sabha on Tuesday. The minister was replying to a question about the objectives of Green Bonds and whether the government could raise funds for projects by issuing them.

Green bonds are financial instruments that generate proceeds for investment in environmentally sustainable and climate-suitable projects. Green Bonds will help the government in tapping the requisite finance from potential investors for deployment in public sector projects aimed at reducing the carbon intensity of the economy.

"The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy," the minister said. In line with the ambition to significantly reduce the carbon intensity of the economy, the Union Budget for 2022-23 had mentioned about sovereign Green Bonds (ANI)