Question

Read the following text carefully:

India has aimed to reduce the country’s carbon intensity by approximately 45% by 2030. To achieve this ‘Green finance’ plays a vital role. At the initial stages, green finance needs a big push from the government. The Indian government has identified projects worth ¥ 25,000 crore that will be financed by proceeds from Sovereign Green Bonds. According to the framework approved by finance ministry, the sovereign green bonds will focus on financing public projects including renewable energy, climate change, clean transportation, sustainable water and waste management and pollution control. Businesses that take green finance can get benefit in various ways. It can help them follow different environmental norms and regulations and thus avoid possible fines. Adopting sustainable developmental practices enhances brand value of businesses. Customers tend to prefer brands that adopt clear sustainable development practices. The energy-efficient and other sustainable development practices promoted by green finance also often help in saving cost, boosting profitability of businesses etc.

On the basis of given text and common understanding, answer the following questions:

1. Define sustainable development.         [1]
2. State the public project areas, where Sovereign Green Bond are focussed.        [2]
3. How can businesses get benefit from green finance?         [3]

Answer 1

1. Sustainable development means providing for everyone's fundamental requirements while allowing everyone to fulfil their dreams of a better life without sacrificing future demands.
2. Sovereign Green Bond focuses on the following project areas:
   1. The energy that is not renewable.
   2. Pollution control and waste management.
3. Green finance will benefit businesses in the following ways:
   1. Companies are protected from paying the penalty for generating pollution and negative externalities.
   2. The company's profitability will rise due to the improvement in brand value.
   3. Businesses will increase their sales if they sell eco-friendly products because modern consumers want them.
   4. It will enable companies to commit to and support sustainable development goals.
   5. Green finance helps businesses reduce expenses and increase their profitability, among other things.