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MNRE May Propose Tax Incentives for Green Bond Buyers

September 13, 2025

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Mint Kolkata

In a bid to boost climate finance, the Union ministry of new and renewable energy (MNRE) plans to urge the finance ministry to offer tax incentives to green bond buyers, according to two people familiar with the matter.

- Rituraj Baruah & Subhash Narayan

The consideration aims to boost investor interest in green bonds, which is necessary to meet the financing requirements for the clean energy targets.

"Though sovereign green bonds were launched a few years back, they are yet to pick up. Now the interest rate of green bonds and other bonds is largely similar. So, there is no incentive for green bond buyers when premiums are low. So, the ministry is looking at ways to make them more attractive and may propose to the finance ministry for some sops in the form of tax rebates to those who invest in green bonds," said one of the two people mentioned above.

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