India’s unique geography, geology together with its vast climatic diversity, make it vulnerable to this century’s existing ‘pandemic’, climate change. As part of its endeavour to accomplish sustainable development goals, India has made aggressive strides towards a low-carbon economy with ambitious targets like achieving a robust 175 gigawatt of renewable energy capacity by the year 2022.
Targets like these warrant massive capital funding. While debt is the primary source of funding renewable power projects, with the challenges of climate growing fast, we will have to find more innovative methods to achieve development goals. This is where green bonds, as a form of raising debt, come into the picture.
A green bond, in simplistic terms, is a debt instrument, like any other bond, by which investors can finance sustainable assets or projects.