Case study on Sovereign Green Bonds (SGBs) Impact on Sustainable Green Public Sector Infrastructure: For Reducing Green Finance Gap

Author Dr.Mahesh K.M.
Co-Author Dr.Dinesh N, Dr P.S.Aithal
DOI https://ww

Country : India
Subject : Management

Keywords : Government Policy; Reserve Bank of India; Sovereign Green Bonds; Public Sectors Projects; Viksit Bharat; Green Finance; SDGs; International Financial Services Centre (IFSC).

Abstract

Purpose: The Indian government and RBI have introduced sovereign green bonds to adhere to the Nationally Determined Contribution (NDC) and the framework of the United Nations Framework Convention on Climate Change (UNFCCC). The 2021 COP 26 UN Climate Change conference in Glasgow and COP27 conference in Egypt will focus on the low carbon economy and the role of financial institutions in fostering a green economy. In order to meet the funding needs of public sector projects in the fields of wind, solar, hydropower, and a sustainable future, these initiatives seek to improve the Geranium of the Public Sector Infrastructure and solve social, economic, and environmental challenges. The International Energy Agency estimates that India has to spend about 160 billion a year in order to reach net-zero emissions and promote green jobs. The Green Bonds are issued by major countries like the UK, France, Germany, and the USA to finance environmental causes. The Climate Risk has an impact on GDP. It enables India to meet Sustainable Development Goals “SDG-6: Sustainable Water and Waste Management SDG -7: Affordable and Clean Energy, SDG-9: Industry, Innovation and Infrastructure, SDG-11: Sustainable Cities and Communities, SDG-13 Climate Action and SDG-15: sustainable use of the terrestrial ecosystem.” . The funds raised through SGRBs can support India's Sustainable Development Goals (SDGs) and promote a green economy. This includes focusing on renewable energy, reducing reliance on fossil fuels, improving water and waste management, and promoting clean transportation. The Sovereign Green Bond (SGrB) framework was launched in 2022 to enable the Indian government to raise funds from the international market. Retail investors, foreign investors, and NRIs trading through the “International Financial Services Centre (IFSC) “ can invest in these bonds with 100% FDI through the automatic route. India enters the JP Morgan Bond Index which will help to inflow FPI and integrate the Indian economy with the world economy—the Sovereign Green Bond 5PS Approach focuses on Protecting, Promoting, and Partnering, Public sectors and Plant for Sustainability.

Design/Methodology/Approach: This research relies on the case study approach, collecting secondary data from websites, journals, and literature reviews about public sector projects.

Findings/Results: The research aims to determine how the Sovereign Green Bond can help reduce the green finance gap and enable India's public sector to achieve Viksit Bharat.

Originality/Value/Novelty: The Sovereign Green Bond Five P’S Approach Protects, Promotes, and Partners with Public Sector Projects and Plants for Sustainability, which is designed to foster sustainable green public sector infrastructure and sustainable development.

Social Implication: The research focuses on how sovereign green bonds in India impact Sustainable Development Goals and how public sectors are utilizing the funds to protect the Environment, Social, and Corporate Governance.

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