Sovereign Green Bonds Trading to Begin at IFSC in 2nd Half of Fiscal Year: RBI Guv

Around April RBI(Reserve Bank Of India) said that It would issue a framework to enable the trading of sovereign green bonds in GIFT City. The government has already been increasing its funds for the last 2 years and has raised approximately Rs 36000 crore in the last 2 years.

RBI(Reserve Bank Of India) Governor Shaktikanta Das announced on Saturday that trading of sovereign green bonds can commence at the International Financial Services Centre in Gujarat during the second half of the current fiscal.

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“We are in discussion with the IFSC, it will be operationalized very soon. I think in the second half (of the current financial year), it will be possible,” said Governor Shaktikanta Das.

According to Governor Shaktikanta Das, the government has raised Rs 1,697 for the 1st half of the current fiscal year reaching the target of Rs 12000 crore by The end of September. The funds were raised by sovereign green bonds. However, the official didn't find any favorable bids.

Shaktikanta Das said, “As the debt manager of the government, we are watchful of what exactly is happening and if something needs to be done we will interact with the government and deal with it.” He added “I think that will have a significant long-term impact on mobilisation of funds for the green sector, not only through green bonds but also overall financing of the green sector,”

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Regarding the taxonomy, It is been said that it is supposed to have a major long-term impact on the mobilization of funds for the green sector not only through green bonds but also in overall green sector financing.

“We will develop a taxonomy for climate finance for enhancing the availability of capital for climate adaptation and mitigation. This will support achievement of the country’s climate commitments and green transition,” said the finance minister Nirmala Sitharaman said in her budget speech this year.

According to the SBI Governer banking regulator will create a taxonomy for climate finance to help boost the availability of credit for the purpose of climate adaptation and mitigation.

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