Green bond: A government initiative towards sustainable finance

Green bonds are a type of financial instrument whereby the issuer pledges to allocate the revenues towards environmental and sustainable projects. This tool serves as a link between investors' desire to fund projects that promote sustainability and the environment with cash raising. The private sector and multilateral institutions are the main issuers, with the overall goal being to improve the environment and climate. With about 1.4 billion people, India is the most populated nation on Earth. As such, the carbon intensity of its economy directly affects global emissions and, consequently, climate change. The nation's constitution includes provisions for the preservation and enhancement of the environment, as well as the protection of forests and wildlife. In order to raise money for environmentally friendly infrastructure, the Indian government plans to issue sovereign green bonds, as announced by Union Minister of Finance and Corporate Affairs last year. The money raised will be used for public sector initiatives that lower the economy's carbon footprint. A comparative analysis of BRICS nations and a few developed nations will be conducted in terms of issuance of green bonds in this chapter. This comparative analysis will give an understanding about the intensity of earnestness among the different nations.