In the budget that is devoid of a single big cohesive idea, the finance minister has created room for “green bonds” to facilitate investment in public enterprises with a view to de-carbonise key sectors of the economy. Green finance, which will gain greater traction in the context of the move towards clean energy, is likely to form a critical part of the government’s overall borrowing and investment programme in fiscal 2022-23.
Sovereign green bonds will be issued to garner resources for what the budget has described as green infrastructure. The aim is to reduce carbon intensity, a goal to which the country is committed following the COP26 summit held in Glasgow in November last year.
