Sovereign Green Bonds (SGrBs)

Published on 15 Apr 2025

• Recently, the Reserve Bank of India (RBI) has allowed investments in the country’s Sovereign Green Bonds (SGrBs) by Foreign Institutional Investors (FIIS).
• Sovereign green bonds are debt securities issued by governments to raise money for projects that benefit the environment or climate. 
• India’s SGrBs framework closely follows its Panchamrit pledges at the COP 26 in Glasgow in November 2021. Through this, India’s dedication to its Nationally Determined Contribution targets would be further strengthened.
• The Union Budget 2022-23 had made an announcement to issue Sovereign Green Bonds (SGB) by Government of India.

Keywords:

Sovereign Green Bonds Climate finance Financial market Stock market Public investment models Foreign Investment sector specific investment