Green bonds to get another shot, govt plans to raise target

While developed markets achieve a greenium of 3-8 basis points over conventional bonds, in India it's limited to 2-3 bps

- Rhik Kundu

India's green financing push could gain new momentum this financial year, with the government exploring a plan to increase its ₹25,342.31 crore target for issuing sovereign green bonds, two people said.

This suggests a turnaround in the government's thinking from a few months earlier, when it was considering a plan to fall back on conventional government securities and other debt instruments for green financing as green bonds have delivered only modest returns.

Green bonds, a type of fixed-income investment, are used to finance projects with positive environmental impacts.