The government of India is planning to issue at least Rs 24,000 crore or $3.3 billion in sovereign green bonds, Bloomberg reported citing sources. The development comes as India is making a shift towards a low-carbon economy. Notably, at the COP26 summit last year, India had committed to meet its net-zero carbon economy by 2070.
As per the report, the debut sale of green bonds is likely to take place next fiscal year starting on April 1. A decision to whether sell green bonds or not will take place after response to the initial issuance.
The government is expecting to lower green bonds yields, according to the report. On Monday, the yields on the 10-year sovereign bond closed at 6.85 per cent.
Globally, several countries are executing sustainable investments options. India, which is the third-largest greenhouse gases emitter has planned to four times increase its renewable energy power generation capacity by 2030. In February this year, the renewable energy companies raised debt worth Rs 17.6 billion.
