Lok Sabha Question No. 1216 (UNSTARRED), answered on 2020-02-10
Subject: Green Bond Policy
Ministry: FINANCE
Asked by: Jasbir Singh Gill

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 1216 TO BE ANSWERED ON MONDAY, 10T" FEBRUARY, 2020/ MAGHA 21,1941 (SAKA)

## GREEN BOND POLICY

## QUESTION

## 1216. SHRI JASBIR SINGH GILL:

Will the Minister of Finance be pleased to state:

- (a) whether the Government is considering to  formulate a Green Bond Policy to catalyze investments  in renewable energy and energy efficiency projects;
- whether it is true that providing appropriate policy support in several countries has led to invigoration of the
- b if so, the details thereof and if not; the reasons therefor;
- if so, the details thereof with the reaction of the Government in this regard; along
- whether the Government intends to issue green bonds to finance its investments in renewable energy and energy efficiency initiatives and if not; the reasons therefor?
- e) whether the Government has   considered providing   support to green bond issuances through subsidies among other forms of policy support and if so, the details thereof; and

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a) & (b): There is no specific Government Policy on Green Bonds. However, the Securities and Exchange Board of India (SEBI) the market regulator for listed securities, including bonds, has provided for a regulatory framework for 30, 2017, wherein it is specified that a debt security shall be considered as ~Green or "Green Debt Securities" if the funds raised through issuance of the debt securities are to be utilized for project(s) and/or asset(s) under any of the following broad categories: May falling

- Renewable and sustainable energy including wind, solar, bioenergy, other sources of energy which use clean technology etc.
- C. Sustainable water management including clean andlor drinking water; water recycling etc.
- b Clean transportation including mass/public transportation ete.
- d\_ Climate change adaptation
- f. Sustainable waste management including recycling, waste to energy efficient disposal of wastage etc.
- C Energy efficiency including efficient and green buildings etc.
- g Sustainable land use including sustainable forestry and agriculture, afforestation etc.
- h\_ Biodiversity conservation:

(c) & (d): As per the information furnished by Ministry of New and Renewable Energy based on the data available on climatebondnet, during the first half year of 2019, global green bond issuances amounted to USD] 17.8 billion which was up 48% as compared to the corresponding period of the previous year i.e 2018. Pursuant t0 the issuance of afore-stated circular by SEBI, there have been 4 issuances of such green bonds in India amounting to Rs. 1,712 crores.

(e): SEBL has already specified the   regulatory framework  for the issuance of green bonds. Government has nol considered any support in the form of subsidies:

(f): Indian Renewable Development Agency Limited (IREDA) had issued the following green bonds: Energy

- a. Green Masala Bonds listed in international market in October, 2017, amounting to USD 300 Million.
2. C Green taxable bonds through which Rs. 865 crores (in two tranches of Rs. 275 crores and Rs. 590 crores) was raised in 2019 to finance the renewable energy projects
3. b Green taxable bonds through which Rs. 700 crore (in tWo tranches of Rs. 200 crore and Rs. 500 crores) was raised in March; 2018 to finance the renewable energy projects.