Why is it in the news?
- The International Finance Corporation (IFC) recently released Green and Social Bond Impact Report 2023.
Key highlights of the report
- IFC launched the Green Bond Program in 2010 and the Social Bond Program in 2017.
- $2 billion was raised through Green bonds, expected to reduce 3.3 million metric tons of carbon dioxide equivalent per year.
- $1.2 billion was raised through Social bonds, targeting sectors like Agribusiness, Gender finance, and Education.
| About Green Bonds
· Green Bonds are debt securities financing environment-friendly projects such as Sustainable Water and Waste Management, Green Buildings, and Pollution control. · In 2022, India’s Ministry of Finance approved India’s First Sovereign Green Bonds (SGBs) Framework, excluding projects like nuclear power generation and landfill projects. · Yes Bank Ltd issued India’s First Green Bond in 2015. · In 2023, India issued the first tranche of its first SGBs worth Rs. 80 billion. About Social Bonds · Social bonds are financial instruments issued by governments and corporations to fund projects addressing social issues like affordable housing and healthcare, benefiting vulnerable populations. · In 2023, the National Bank for Agriculture and Rural Development (NABARD) raised more than Rs. 1000 crore via social bonds.
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