In a bid to strengthen the framework for green bonds and address rising issues concerning green washing, market regulator Securities and Exchange Board of India (SEBI), has decided to introduce two new concepts for sustainable finance.
The new bonds—blue and yellow, are sub-categories of green debt securities. The concept of blue bonds is related to water management and the marine sector while yellow bonds pertain to solar energy, SEBI said in a press release.
According to media reports, the measures have been taken in the backdrop of increasing interest in sustainable finance in India and globally. They add impetus to align the existing framework for green debt securities with the updated Green Bond Principles (GBP) recognized by IOSCO.
It must be noted that Indian companies raised approximately $7 billion through ESG (Environmental, Social and Governance) and Green bonds in 2021 viz as viz $1.4 billion in 2020 and $4 billion in 2019.