Green Bonds-Means of Green financing: Issues and challenges in India

A green bond is a new entrant in the field of finance and it significantly draws the attention of many researchers, scholars and policy makers of the different nations. The market of green bonds has suddenly increased to a new height, especially after the COP 21 agreement. To keep the climate change under control, it is very vital and essential to introduce a new instrument in the capital market and this new instrument is known as green bond. After the United Nations Framework Convention on Climate Change (UNFCC) and the Kyoto Protocol, the 2015 Paris Agreement is the first treaty that brings together all nations - including the United States of America - for collective action by an international public legal agreement that constitutes at the same time a platform for investors to fight against climate change. Green Bonds are consequently considered to fulfill this argument and key in the implementation and capital raising of the Nationally Determined Contributions (NDCs) to the 2015 Paris Climate agreement. They provide a suitable and simultaneously risk-managed tool for both public and private investors. This research article is an endeavor to look at the issuance and implementation issues related with the Indian economy and also at the global level.