Emergence of impact investing in environment sustainable sectors

Abstract

In the Impact Investing industry, green bonds have become quite popular in the last decade as a financial instrument that allows investors to partner with institutions for environmental sustainability by creating funding opportunities that are beneficial to both parties. This partnership has successfully brought both public and private investments into the environmental sector and enabled countries to work towards sustainable development and growth. India has been an active participant in the fight to prevent adverse effects of climate change and has huge potential in the green bonds market. Since its first green bond issuance in 2015, India now stands second, after China, among the emerging markets and stands to increase the size of the green bond market in the coming future. Green bonds, as a fixed income instrument, is regulated in India by SEBI and have a wide range of bond structures in place. In this project, we have tried to analyse the Indian regulatory environments with global standard and the presence of "Greenium" in the Green Bonds market. This report also deals with the emergence and utilisation of green bonds in India and compare it with the global industry. Lastly, based on the interaction with practitioners, we have tried to capture their insights on the Green Bonds domain.