Green Bonds
- October 3, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Green Bonds
Subject – Environment
Context – India at the bottom of ethical funds with just 22 funds worth $2 bn: Report
Concept –
- India, despite being the sixth largest economy and the third largest polluter, has the lowest number of ethical/sustainable/green bonds at just about 22 funds.
- Collectively called the ESG funds (money deployed mutual funds and insurance) globally is over USD 103.4 trillion as of March 2020, while the same here is just USD 7.93 billion through 22 issues in so far 2021.
- However, the report says the country is witnessing an early signs of pick-up in demand for ESG funds — which are funds broadly labelled as ESG or environmental, social and governance/sustainable investments/ethical funds across mutual funds and insurance products as four of the past five quarters saw strong demand.
- Yet India is well below many countries and markets as there are only 22 ethical funds in India compared to Belgium (148), Pakistan (159), China (162), Germany (352), USA (612) and even Cayman Islands (28) and Luxembourg leading at 2,135.
- While the Luxembourg leads the ethical fund issuance with 2,135, Australia is second with 1,006 such issuances, France comes third (844), Ireland (630), US (612), Britain (562).
To know about green bonds, please click here.