HSBC India’s chairman Naina Lal Kidwai announced to launch ’green bonds’ in India for raising funds for investments in environmental projects.

Announcement was done by the HSBC chairman in a Ficci event held on 3 August 2015. The total investment attracted by Green Bonds in last two years is 37 million dollars.

HSBC is the fourth largest issuer in the world. Green Bonds in India was initially launched by Axis Bank and Yes Bank in February 2015 that attracted investment of 1,000 crore rupees against the target of 500 crore rupees.

Chairperson of the Indian Council for Research on International Economic Relations, Isher Judge Ahluwalia, unveiled a report titled, “India: Pathways to Sustaining Rapid Development in a New Climate Economy” prepared jointly by World Resources Institute and ICRIER.

As per the report, “The investments we make over the next 15 years will be decisive for the future of our climate system and economy. Around USD 90 trillion globally will need to be invested in cities, land use and energy infrastructure between now and 2030 to deliver development and growth.”

The report lists 11 important areas for reform of energy systems, land use and cities, in order  to boost development and reduce poverty in a sustainable manner.

What is Green Bond?

A bond is a debt instrument with which a bond issuer gets capital while the investors receive fixed income in the form of interest. The issuer of green bond gets capital from the investors only if the investment is being raised to fund ‘green’ projects relating to renewable energy or emission reductions etc. Note:

Besides green bonds HSBC is also emphasising on creating ‘Yieldcos’. It is a product that enables access to low cost liquid and generates predicable cash flows by bundling up renewable assets with long-term power purchase agreement