- Green Bonds are a type of bond specifically earmarked to raise money for climate and environmental projects. - They can be issued by various entities, including governments (sovereign, state, municipal), intergovernmental organizations, and corporations. Options A and B are partially correct by mentioning specific issuers but are not comprehensive. - The crucial characteristic of a green bond is that the proceeds are used to finance projects with environmental benefits. These projects can include renewable energy, energy efficiency, sustainable waste management, sustainable land use, biodiversity conservation, clean transportation, sustainable water management, climate change adaptation, etc. Option D is too restrictive by limiting it only to renewable energy projects. - Option C provides the most accurate and broad description of what a green bond is used for.
Which one of the following statements best describes the term 'Green Bonds'?
Asked in UPSC CAPF 2010 · Topic: Sustainable Economic Development (Financing Sustainable Development: Green Bonds, Climate Finance, ODA)
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Answer: C. They are bonds issued to finance projects that have environmental benefits.
More Economic Development questions
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- Sovereign Green Bonds are
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