GREEN BONDS

• Vaid's ICS, Lucknow
• 08, Feb 2022

Why in News?

RBI Governor has recently said  that the cost of green bond issuance is high in India.

Concept:

• A green bond is like any other regular bond but with one key difference: the money raised by the issuer are earmarked towards financing `green’ projects, i.e. assets or business activities that are environment-friendly.
• The issuance of the first green bond in 2007 was made by two multilateral development banks (World Bank and European Investment Bank).
• India’s first green bond was issued by YES Bank in 2015.

Benefits of Green Bonds:

• Green bonds enhance an issuer’s reputation, as it helps in showcasing their commitment to wards sustainable development.
• It also provides issuers access to specific set of global investors who invest only in green ventures. With an increasing focus of foreign investors towards green investments, it could also help in reducing the cost of capital.
• Green bonds present the opportunity for investors to feel as if they’re making a difference for the environment while earning a respectable return in the process.

SEBI Regulations

• For designating an issue of a corporate bond as green bond, an issue apart from complying with the issue and listing of debt securities regulations, would have to disclose additional information in the offer document such as use of proceeds.
• SEBI’s indicative list includes renewable and sustainable energy such as wind and solar, clean transportation, sustainable water management, climate change adaptation, energy efficiency, sustainable waste management and land use and biodiversity conservation.

Facts for Prelims

GENERAL SHERMAN

Two wildfires in California – one called the Colony fire and the other called Paradise – are burning through the Sequoia National Park in the Sierra Nevada that is home to some of the largest trees in the world.

About it :

• Among these trees is the world’s largest tree popularly known as General Sherman, which firefighters are now trying to protect from the blaze.
• The General Sherman tree is the world’s largest in terms of volume and exists in the Giant Forest sequoia grove of the national park. As per recent estimates, General Sherman is about 2,200 years old.
• It stands at a height of 275 feet (taller than the leaning tower of Pisa) and has a diameter of 36 feet at the base.
• Even 60 feet above the base, the tree has a diameter of 17.5 feet.

SEA CUCUMBERS

In a swift operation, the Indian Coast Guard (ICG) team at Mandapam, Tamil Nadu seized two tonnes of sea cucumber, a banned marine species.

About:

• Sea cucumbers are in high demand in China and Southeast Asia.
• Sea cucumber in India is treated as an endangered species listed under schedule I of Wildlife Protection Act of 1972.
• It is primarily smuggled from Tamil Nadu to Sri Lanka in fishing vessels from Ramanathapuram and Tuticorin districts.