The Legal Architecture of Green Bonds in India: Challenges and Prospects for Sustainable Development

Abstract

Environmental concerns have been one of the most relevant areas of discussion for the global economy. The rise in environmental problems is closely connected with Industrial Development. In addition to other efforts undertaken to control environmental harm in nations worldwide, “Green Bonds” are considered to be the most effective innovations for promoting and attaining Sustainable Development Goals (SDGs). Green Bonds mainly emphasise sustainable financing i.e. channelling financial resources for promoting a robust and greener future, by the use and production of renewable energy, thereby reducing global emissions. Considering the significant impact of “Green Bonds” on the production and emission of renewable energy, it is pertinent to understand the impact of “Green Bonds” in the attainment of sustainability.

The present paper explores the evolution and adoption of Green Bonds in India and the legal and regulatory framework surrounding them. The work will focus on the adoption of green bonds in addressing environmental sustainability and the challenges faced by the government in operationalising the green bonds framework. It will also delve into the growing literature on green bonds in India to understand the trends of green investments with a particular focus on the role of financial institutions, the government and key stakeholders. Additionally, it evaluates the environmental impact of green bond-funded projects and their compliance with India's climate commitments under international frameworks. Lastly, the research highlights the critical role of green bonds in facilitating India's transition towards a low-carbon, sustainable economy and provides suggestions for improving the framework and ushering in green financial systems in India