GREEN INVESTMENT

Green bonds are popularly known as climate bonds

They are fixed interest-bearing financial instruments. Indian govt issued their framework in 2022

Green bonds are issued by sovereign entity/corporation, or inter-governmental organisation

Green bonds carry nil credit and default risks, and have no project risks

Retail investors can invest in green bonds through RBI retail direct website or on their brokerage account

There is no specific tax benefits on these bonds

There is risk of ‘greenwashing’, which means making environmental claims without evidence

Despite environmental benefit, it might not help everyone in meeting their financial goals

Experts believe India’s green bond market is at a nascent stage and needs more time to mature and improve