{"id":4696,"date":"2022-10-21T12:44:02","date_gmt":"2022-10-21T12:44:02","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=4696"},"modified":"2026-02-25T10:59:00","modified_gmt":"2026-02-25T10:59:00","slug":"what-is-green-bond","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/","title":{"rendered":"What is Green Bond?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Environmental protection has unquestionably become a common understanding and development strategy of all countries around the globe. The environment is the basis and support of human life and survival, and the assurance of sustainable human growth. The modern human race is attempting to enter the postindustrial era and rebalance the environment at a later stage of development. To achieve reciprocal gains, sustainable world development, and to build a home on Earth for the peaceful coexistence of humanity and the environment, all nations must carry out their respective tasks and obligations in environmental governance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since the entire human race has been involved in disturbing nature from its natural functions, we have a responsibility to sustain and provide a better environment for future generations. We might be contributing to the growth environment fairly, but there is an opportunity to contribute further to prepare the world for future generations. Investing in \u201cGREEN BOND\u201d can be one of the significant contributions to the world.<\/span><span style=\"font-weight: 400;\"> To grasp the full green bonds meaning,<\/span><span style=\"font-weight: 400;\"> let us understand what is Green Bond and what its basics are.<\/span><\/p>\n<p><a href=\"https:\/\/goldenpi.com\/blog\/bond-news\/how-nris-can-invest-in-indian-bonds\/\"><span style=\"font-weight: 400;\">How NRIs Can Invest in Indian Bonds?<\/span><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#What_are_Green_Bonds\" >What are Green Bonds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#History_of_Green_bonds\" >History of Green bonds\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#What_are_tax-free_bonds\" >What are tax-free bonds?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Global_Green_bond_market\" >Global Green bond market\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#What_Are_Infrastructure_Bonds\" >What Are Infrastructure Bonds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Green_Bonds_Market_in_India\" >Green Bonds Market in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Types_of_Green_Bonds\" >Types of Green Bonds\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Regulation_to_Issue_Green_Bonds_in_India\" >Regulation to Issue Green Bonds in India\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Benefits_of_Investing_in_Green_Bonds\" >Benefits of Investing in Green Bonds\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Are_green_bonds_tax-exempt\" >Are green bonds tax-exempt?\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Closing_thoughts\" >Closing thoughts<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Investment_Strategies_in_the_Bond_Market\" >Investment Strategies in the Bond Market<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Green_Bonds_FAQs\" >Green Bonds FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#What_are_green_bonds\" >What are green bonds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Are_green_bonds_tax-exempt_in_2026\" >Are green bonds tax-exempt in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Are_green_bonds_tax-free_in_India\" >Are green bonds tax-free in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Why_invest_in_green_bonds\" >Why invest in green bonds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#What_are_green_bonds_in_India_in_2026\" >What are green bonds in India in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-is-green-bond\/#Investment_Strategies_in_the_Bond_Market-2\" >Investment Strategies in the Bond Market<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_are_Green_Bonds\"><\/span><b>What are Green Bonds?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Similar to a conventional bond, a \u201cGreen Bond\u201d is a fixed-income financial product. The funds raised from investors for green bonds are only used to support initiatives that have a positive environmental impact, such as renewable energy projects, clean transportation projects, water management projects, etc. This is a key distinction between green bonds and conventional bonds. It encourages sustainability and works toward a number of goals, such as lowering pollution levels, enhancing energy efficiency, and lowering global warming<\/span><b>.<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"History_of_Green_bonds\"><\/span><b>History of Green bonds\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The European Investment Bank first issued green bonds in 2007, which was approximately 15 years ago. The World Bank then started issuing green bonds in 2008 to support its financing initiatives for projects related to climate change. The significance of green bonds became increasingly apparent with the introduction and growth of ESG (Environment, Social, and Governance) and Sustainability Framework in the investing reporting framework.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, the International Capital Market Association developed the Green Bonds Principles2 (GBP), which places an emphasis on transparency, disclosure, and integrity in the growth of the green bond market.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_tax-free_bonds\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/what-are-tax-free-bonds\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Green_Bonds\"><b>What are tax-free bonds?<\/b><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><span class=\"ez-toc-section\" id=\"Global_Green_bond_market\"><\/span><b>Global Green bond market\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Global Green Bond Market was valued at USD 436 billion in the year 2021.<\/span><\/p>\n<p><img decoding=\"async\" class=\" wp-image-4698 aligncenter\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/10\/21071012\/Green-Bond-1.png\" alt=\"\" width=\"392\" height=\"261\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/10\/21071012\/Green-Bond-1.png 600w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/10\/21071012\/Green-Bond-1-300x200.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/10\/21071012\/Green-Bond-1-585x390.png 585w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/10\/21071012\/Green-Bond-1-263x175.png 263w\" sizes=\"(max-width: 392px) 100vw, 392px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_Infrastructure_Bonds\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-are-infrastructure-bonds\/\"><span style=\"font-weight: 400;\">What Are Infrastructure Bonds<\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Green_Bonds_Market_in_India\"><\/span><b>Green Bonds Market in India<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to the Economic Survey 2019-20, the first half of 2019 saw transactions totalling $10.3 billion in green bonds, making India one of the Asian countries with the fastest-growing green bond markets. According to the U.K. based green bond tracking agency Climate Bonds Initiative, India issued $6.11 billion of green bonds in 11 months of 2021. As previously mentioned, green bonds are similar to regular bonds, except their proceeds are designated towards particular \u201cgreen,\u201d or climate-friendly, projects or assets.<br \/>\n<\/span><br \/>\n<img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/30103516\/What-is-Green-Bond.gif\" alt=\"What is Green Bond?\" \/><\/p>\n<p><span style=\"font-weight: 400;\">According to officials with knowledge of the matter, India will issue at least 240 billion rupees ($3.3 billion) in sovereign green bonds as the nation transitions to a low-carbon economy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">India will need to invest $10.103 trillion by 2070 to achieve carbon neutrality, according to the CEEW-CEF. According to the think tank, developing carbon capture and storage technology and green hydrogen technology will cost an additional $1.494 trillion and $8.412 trillion, respectively, including both, to replace India\u2019s coal-dependent power sector with renewable energy sources.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In accordance with the Paris Agreement, India\u2019s Intended Nationally Determined Contribution (INDC) for the years 2021 to 2030 urges a 33% to 35% reduction in GDP emissions from 2005 levels, a 40% increase in installed capacity for non-fossil fuel-based energy sources, and the establishment of 2.5 to 3 billion tonnes of carbon dioxide equivalent in forest cover.<\/span><\/p>\n<p><img decoding=\"async\" class=\"wp-image-4699 alignleft\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/10\/21071109\/Green-Bond-2.png\" alt=\"\" width=\"299\" height=\"241\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/10\/21071109\/Green-Bond-2.png 425w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/10\/21071109\/Green-Bond-2-300x241.png 300w\" sizes=\"(max-width: 299px) 100vw, 299px\" \/> <img decoding=\"async\" class=\" wp-image-4700 aligncenter\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/10\/21071127\/Green-Bond-3.png\" alt=\"\" width=\"209\" height=\"253\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/10\/21071127\/Green-Bond-3.png 425w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/10\/21071127\/Green-Bond-3-248x300.png 248w\" sizes=\"(max-width: 209px) 100vw, 209px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The country\u2019s first green infrastructure bonds were successfully issued in 2015 by YES BANK, the fourth-largest private sector bank in India, raising INR 1,000 crores ($14,92,53,731) from the sale. The money received is being utilised by YES BANK to fund renewable energy infrastructure projects, including modest hydropower, solar, wind, and biomass projects.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Types_of_Green_Bonds\"><\/span><b>Types of Green Bonds\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>An organisation-guaranteed bond<\/b><span style=\"font-weight: 400;\">, also known as a general obligation bond, bases its creditworthiness on the issuing organisation rather than merely the financed asset, in this case, the solar farm. The farm is recorded on the issuer\u2019s books, and all of the issuer\u2019s cash flow, not only that from the farm, is used to repay the lenders. The government, public institutions, or private companies may issue these bonds. Some of these bonds are also convertible, meaning the lenders have the option to convert them into equity at a later time.<\/span><\/p>\n<p><b>Asset-backed bonds\u2019<\/b><span style=\"font-weight: 400;\"> creditworthiness is only dependent on the projected profits from the solar farm; other cash flows of the issuer are not taken into account. The solar farm asset is moved into a different organisation, also referred to as a special purpose entity (SPE) or special purpose vehicle (SPV). This asset is everything that this entity has. Only money made from the sale of this farm will be used to pay back the loans.<\/span><\/p>\n<p><b>A hybrid bond,<\/b><span style=\"font-weight: 400;\"> often referred to as a covered bond, is a dual-recourse bond that can be set up in one of two ways. In the first approach, the farm is recorded on the issuer\u2019s books, and in the event of a payment default, the lender will come into possession of the farm. If the farm\u2019s value is insufficient to satisfy the debt, the lender will also be entitled to claim other assets of the issuer. In a second approach, the farm is an SPE, and when it defaults, the lender receives ownership of the SPE\u2019s assets. Similar to the first approach, if the assets\u2019 value is insufficient, the lender may file a claim against the issuer\u2019s other assets as well.<\/span><\/p>\n<p><a href=\"https:\/\/goldenpi.com\/blog\/investment-guide\/how-to-build-a-monthly-pension-using-bonds\/\"><span style=\"font-weight: 400;\">How to Build a Monthly Pension Using Bonds<\/span><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Regulation_to_Issue_Green_Bonds_in_India\"><\/span><b>Regulation to Issue Green Bonds in India\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A \u201cgreen debt security\u201d is one that complies with the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021. Any debt security issued to raise money for projects or assets falling under any of the following categories is referred to as green debt security.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Renewable and sustainable energy sources, such as wind, solar, bioenergy, and other clean energy sources.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Clean transportation, such as public transportation and mass transit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sustainable water management practices, such as recycling water and\/or providing clean water for drinking.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adaptation to climate change.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Energy efficiency, including green and energy-efficient construction, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Effective trash disposal, including recycling, waste-to-energy, and other practices.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sustainable land use, such as reforestation, sustainable agriculture, forestry, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Biodiversity conservation, as well as any other category that SEBI may notify.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_Investing_in_Green_Bonds\"><\/span><b>Benefits of Investing in Green Bonds\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Green bonds offer a means for investors to support environmental concerns.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Retail investors might find it too expensive to purchase a green bond. There are still green bonds that make it simple to invest in green bond baskets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">People who are more conscious of and motivated to take action to combat climate change are drawn to the green aspect.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Higher demand for green bonds results in a decrease in interest rates, which reduces company spending. These savings are either distributed as a dividend to investors or utilised to reduce the cost of borrowing, which boosts profitability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A few issuers additionally utilise the funds to take action to cut carbon emissions and restore water ecosystems and biomes.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The credit rating of these bonds typically matches that of other financial instruments issued by the same company.<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/how-can-one-diversify-their-portfolio-with-nbfc-bonds\/\"><span style=\"font-weight: 400;\">How Can One Diversify Their Portfolio With NBFC Bonds?<\/span><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_green_bonds_tax-exempt\"><\/span><b>Are green bonds tax-exempt?\u00a0<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">No, there will be no tax exemption for green bonds.<\/span> <span style=\"font-weight: 400;\">Typically, nations that issue green bonds make sure that any income from these investments is tax-free. A lower borrowing cost will result from this. According to the official cited above, India won\u2019t provide any such perks.<\/span><\/p>\n<p><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/what-are-the-tax-implications-of-investing-nbfc-bonds\/\"><span style=\"font-weight: 400;\">What are the Tax Implications of Investing in NBFC Bonds?<\/span><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Closing_thoughts\"><\/span><b>Closing thoughts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It has become imperative that each one of us has the responsibility for the development and protection of the environment going forward. The green bond can be one of the significant opportunities to be part of saving the world&#8217;s communities, which would enhance the longevity of the world&#8217;s existence. Let us do it.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Investment_Strategies_in_the_Bond_Market\"><\/span><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/investment-strategies-in-the-bond-market\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Green_Bonds\"><b>Investment Strategies in the Bond Market<\/b><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h2><span class=\"ez-toc-section\" id=\"Green_Bonds_FAQs\"><\/span><b>Green Bonds FAQs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_are_green_bonds\"><\/span><span style=\"font-weight: 400;\">What are green bonds?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A green bond is like a regular bond, which raises money for eco-friendly projects like solar power, clean transport, or water management. These products may be ideal for investors supporting the fight against environmental degradation.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_green_bonds_tax-exempt_in_2026\"><\/span><span style=\"font-weight: 400;\">Are green bonds tax-exempt in 2026?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">No, green bonds are not tax-exempt in India, even in 2026. The interest earned through green bonds is taxable, unlike other non-taxable bonds. But their focus on a greener environment has helped keep them in demand among investors.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Are_green_bonds_tax-free_in_India\"><\/span><span style=\"font-weight: 400;\">Are green bonds tax-free in India?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Green bonds aren\u2019t tax-free, as the income from them is taxed in India, with no special exemptions. While some countries offer tax-free income from green bonds to reduce borrowing costs, India does not provide these perks.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_invest_in_green_bonds\"><\/span><span style=\"font-weight: 400;\">Why invest in green bonds?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Investing in green bonds lets you support environmental concerns like reducing pollution and enhancing energy efficiency while earning steady returns like regular bonds. Conscious investors find green bond baskets accessible, as lower rates boost profits, and it\u2019s an impactful choice.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_green_bonds_in_India_in_2026\"><\/span><span style=\"font-weight: 400;\">What are green bonds in India in 2026?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In India, green bonds have been funding climate-friendly projects like wind farms and green buildings with banks like YES Bank since 2015. In 2026, they will target low-carbon emission cuts and non-fossil energy, as per <\/span><a href=\"https:\/\/www.sebi.gov.in\/sebiweb\/home\/HomeAction.do?doListing=yes&amp;sid=1&amp;ssid=3&amp;smid=0\"><span style=\"font-weight: 400;\">SEBI regulations<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>Latest Updated:13-02-2026<\/p>\n<h3 style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"Investment_Strategies_in_the_Bond_Market-2\"><\/span><strong><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/investment-strategies-in-the-bond-market\/?utm_source=blog&amp;utm_medium=blog&amp;utm_Green_Bonds\">Investment Strategies in the Bond Market<\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>Environmental protection has unquestionably become a common understanding and development strategy of all countries around the globe. The environment is the basis&hellip;<\/p>\n","protected":false},"author":4,"featured_media":12104,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[24],"tags":[],"class_list":["post-4696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bond-market"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Green Bond? - What are Green Bonds<\/title>\n<meta name=\"description\" content=\"Discover eco-friendly investing with Golden Pi! Explore what are green bonds by driving positive change. Learn their benefits and invest in a greener future with Golden Pi&#039;s curated options. 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