Green Bonds

A green bond is a debt instrument where the proceeds are exclusively used to finance or refinance eligible environmental and climate-related projects—such as renewable energy, clean transportation, energy efficiency, and sustainable water management. The Green Bond Principles, established by the International Capital Market Association (ICMA), provide a voluntary framework for issuance. In India, both the government (through Sovereign Green Bonds issued by the RBI) and corporates have tapped the green bond market to fund sustainability initiatives. For investors, green bonds offer a way to align fixed-income portfolio exposure with environmental objectives while earning market-competitive returns.