Govt urges sector to invest in SGrBs

The government of India has proposed to issue Sovereign Green Bonds (SGrBs) within the Budget 2022-23. The move has been proposed with the objective of reducing the carbon intensity of the economy and as a measure for achieving National Determined Contribution (NDC) under the Paris Climate Change Accord, 2015 connected to climate change, mitigation, adaptation, finance and preservation of environment.

“With the objective of de-concentration and diversification of the infrastructure investment portfolio of the insurers and from the perspective of participation in Environmental, Social and Governance (ESG) initiatives and for proactive participation in sustainable development and in preventing environment degradation, insurers are encouraged to consider investing in Sovereign Green Bonds,” read a statement.