19.6         ndian     onom
     of a more sustainable economy5. By now, several           into a green global economy appeared at different
     working definitions have come up—China’s                  global fora including the G20. Experts believe that
     Green Credit Guidelines; the Climate Bonds                for developing countries like India, private finance
     Taxonomy of Green Bonds; the International                will not readily be forthcoming and public finance
     Development Finance Club’s (IDFC) approach                (both international and domestic) needs to be
     to reporting on green investment; the World               used to leverage private finance.
     Bank/International Finance Corporation’s (IFC)            India and Green Development: Green finance
     Sustainability Framework; and the UK Green                is yet to pick up in India. Attaining the ambitious
     Investment Bank Policies.                                 solar energy target, development of solar cities,
          Current definitions in use reveals sizeable          setting up wind power projects, developing smart
     variance—clean energy; energy efficiency; green           cities, providing infrastructure which is considered
     buildings; sustainable transport; water and waste         as a green activity and the sanitation drive under
     management; greening the banking system, the              the ‘Clean India’ or ‘Swach Bharath Abhiyan’ are
     bond market and institutional investment; as well         all activities needing green finance.
     as areas of controversy such as nuclear and large-              India created a corpus called the NCEF
     scale hydro energy, bio-fuels and efficiency gains        (National Clean Energy Fund) in 2010-11 out
     in conventional power.                                    of the cess on coal produced/imported (‘polluter
          The World Bank Group has set up an                   pays’ principle) for the purpose of financing and
     informal Sustainable Banking Network of banking           promoting clean energy initiatives and funding
     regulators, led by developing countries, to               research in the area of clean energy. Some of the
     promote sustainable lending practices. In 2015,           projects financed by this fund include innovative
     green bonds issued by governments, banks,                 schemes like—
     corporates and individual projects amounted to                  (i) a green energy corridor for boosting the
     US$42 billion.                                                      transmission sector;
            At the global level, more than 20 stock                 (ii) Jawaharlal Nehru National Solar
     exchanges have issued guidelines on environmental                   Mission’s (JNNSM) installation of solar
     disclosure, and many green indices and green ETFs                   photovoltaic      (SPV) lights and small
     (exchange-traded funds) have been developed. A                      capacity lights, installation of SPV water
     growing number of institutions, including the                       pumping systems, SPV power plants,
     Bank of England and Bank of China (Industrial and                   grid-connected rooftop SPV power
     Commercial Bank of China), have begun to assess                     plants; and
     the financial impact of climate and environmental             (iii) pilot project to assess wind power
     policy changes. Germany, the US and the UK                          potential.
     have developed interest subsidy and guarantee
                                                                     By March 2018, most of the banks had issued
     programmes for green financing, and over a dozen
                                                               green bonds in India. Proceeds from these bonds are
     government-backed green investment banks are
                                                               mostly used for funding renewable energy projects
     operating globally. The G-20 has also recently set
                                                               such as solar, wind and biomass projects and other
     up a GFSG (green finance study group).
                                                               infrastructure sectors, with infrastructure and
                                                               energy efficiency being considered as green in their
        5.  Green Finance Study Group—as quoted by the         entirety. By early 2016, the SEBI (Securities and
            Ministry of Finance, Economic Survey 2015–16, Vol. Exchange Board of India) approved the guidelines
            2, pp. 182-83.
                                                               for green bonds. India needs to take care of certain