+
ECONOMY & POLICY

"Reducing Carbon Footprint: Strategies for Environmental Sustainability"

Somewhere in 2006, Swedish pension funds concerned with global warming and environmental degradation were looking to diversify their portfolio to include investments in environment-friendly projects that would not carry additional risk. They could not find any such instruments. This led t...

Somewhere in 2006, Swedish pension funds concerned with global warming and environmental degradation were looking to diversify their portfolio to include investments in environment-friendly projects that would not carry additional risk. They could not find any such instruments. This led them to explore the possibility of creating an instrument like a regular investment product in terms of yield, security, risk and maturity, while addressing concerns related to the environment. After many discussions with stakeholders, the draft of an instrument was prepared. With this, investors approached the World Bank within a month of deliberations, the Bank accepted the concept and worked out the details and the first ‘green bond’ was born in 2008. This bond created the blueprint for today’s green bond in terms of the criteria to be followed to be classified as one. While drafting the product, financial and environmental teams interacted, understanding and addressing their respective concerns, to ensure that the bond meets the objective with which it was designed. This included criteria like opinion from recognised climate research institutions, transparency and impact reporting. This bond established that it is possible to raise funds at competitive rates for environmentally sustainable projects and that there is a large pool of investors willing to invest in such bonds. What are green bonds? Green bonds are fixed-income instruments funding projects related to the climate and environment. However, deciding what should count within that definition can be difficult. The Climate Bonds Initiative (CBI), International Capital Market Association (ICMA), European Union and Chinese government have developed guidelines to define green bonds. Broadly, green bonds finance projects aimed at energy efficiency, pollution prevention, sustainable agriculture, fishery and forestry, the protection of aquatic and terrestrial ecosystems, clean transportation, clean water and sustainable water management.

Next Story
Infrastructure Urban

APCRDA Approves Rs 9.04 Bn to Upgrade Infrastructure in 29 Amaravati Villages

The Andhra Pradesh Capital Region Development Authority (APCRDA), chaired by Chief Minister N Chandrababu Naidu, has approved Rs 9.04 billion for addressing key infrastructure gaps in 29 villages within Amaravati’s greenfield capital area, announced Municipal Administration Minister P. Narayana at the 51st CRDA meeting.The funds will be used to upgrade critical facilities including roads, drains, drinking water supply, sewerage systems, and street lighting. A detailed assessment revealed a 30 per cent shortfall in water supply, a total absence of sewerage infrastructure, a 40 per cent defici..

Next Story
Infrastructure Transport

Cabinet Approves Phase-1B of Lucknow Metro Rail Project Worth Rs 58.01 Bn

The Union Cabinet, led by Prime Minister Narendra Modi, has approved Phase-1B of the Lucknow Metro Rail Project in Uttar Pradesh. This phase covers an 11.165 km corridor with 12 stations—7 underground and 5 elevated—extending the city’s metro network to 34 km upon completion.Phase-1B targets the dense, historic parts of Lucknow, enhancing connectivity across key commercial, healthcare, tourist, and culinary hubs. Important areas served include Aminabad, Yahiyaganj, Pandeyganj, Chowk, King George’s Medical University, and landmarks like Bara Imambara and Rumi Darwaza.This expansion prom..

Next Story
Infrastructure Transport

Major Upgrades Planned for Tamil Nadu’s National Waterways

Tamil Nadu is poised for significant infrastructure upgrades across its National Waterways (NWs), with a focus on developing jetties, cargo hubs, and cruise tourism circuits, according to the Ministry of Ports, Shipping and Waterways. These projects aim to promote sustainable inland water transport and boost regional economic activity.Key projects include the development of Buckingham Canal (part of NW-4), with jetties planned at the following locations:Mahabalipuram to Ediyur BridgeCooum River near Marina BeachPulicat LakeEnnore Port to ETPS, specifically for cargo operationsOther National Wa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?