SEBI approves stronger framework for green bonds

Securities and Exchange Board of India (SEBI) has decided to strengthen the framework for green bonds by introducing the concept of blue bonds and yellow bonds as new modes of sustainable finance.

The concept of blue bonds is related to water management and marine sector while yellow bonds pertains to solar energy. These are sub-categories of green debt securities. The framework defines green debt securities as debt securities issued for raising funds that are to be utilised for projects or assets falling under certain categories. The regulator will specify the basic do’s and don’ts relating to green debt securities to address green washing related risks.