This document discusses green finance and funding in India. It defines green finance as investments that aim to reduce environmental impacts like greenhouse gas emissions and promote renewable energy and sustainability. It provides examples of green financial products and services available in India like green bonds, green loans, and green banks. It also gives examples of green fund projects in India focused on areas like groundwater recharge, climate resilience, and rooftop solar. Major global allocators of green funds are also mentioned like the Climate Investment Funds and World Bank.

1. GREEN FUNDING/
FINANCING
SUBMITTED TO - DR. PARNEET KAUR
NAME – DEEPIKA
ROLL NO. – 21421702
COURSE – MBA(HHCM)

2. GREEN FINANCE/FUNDING
Green finance is the initiative basically directs
towards the investment policy in eco-friendly
instruments aiming to reduce greenhouse gas
emission, renewable energy, controlling pollution,
waste energy management and ultimately aiming
for overall protection and development of
biodiversity and sustainable development of
Nation. Green finance refers to any financial
instrument or investment including equity, debt,
grant, purchase and sale of green products which
make a combined investment policy firm both
public and private finance.[ A green fund is
a mutual fund or another investment vehicle
that will only invest in companies that are
socially conscious or directly promote
environmental responsibility. A green fund
can come in the form of a
focused investment vehicle for companies
engaged in environmentally supportive
businesses, such as alternative energy,
green transport, water and waste
management, and sustainable living.]

3.  KEY TAKEAWAYS
• Green funds might invest in companies engaged in green transportation, alternative energy,
and sustainable living.
• Green investing began in earnest in the 1990s after environmental disasters like the Exxon
Valdez oil spill gained worldwide attention. [Following the Exxon Valdez oil spill of 1989,
Congress passed the Oil Pollution Act (OPA) of 1990, which strengthened the powers of the
Environmental Protection Agency (EPA) to prevent future oil spills and to punish polluters]
• $50 billion were invested in green funds in 2020, more than double the inflows of the
previous year.

4. WHY IS GREEN FINANCE IMPORTANT
• It aims to achieve a balance between economic returns and environmental
benefits through greater capital allocation to sustainable measures. Financial
arrangements introduced to execute the vision of green financing include the
following: energy production from renewable sources (solar, hydro, wind),
cleaner transportation, energy-efficient building, waste management, etc.
Financial instruments and institutions like green bonds, green banks, renewable
energy-based PSUs, green funds, etc. have come up to facilitate these
arrangements.

5. Why Green Finance?
 India in its ‘Intended Nationally Determined contribution’ for the time period 2021-2030 has set the
following targets
 India is running as one of the largest renewable energy target initiated in the world .In 2019 UN
Climate summit, India announced it will be doubling the target of producing renewable energy from
175 GW by 2020 to 450GW. {gigawatt}
 This targeted to produce 100 GW solar power, 60GW wind power, 10 GW of bio mass and 5 GW of
hydro power by 2022
 Electrical power targets include achieving 227 GW of energy from renewable energy by 2020.
 Asian Development Bank have assessed the cost intake for climate change adaption in southern
Asian countries and indicates that approximately India’s cost of acquisition in energy sector alone
comes around USD 7.7 billion in 2030. Estimate by National Institution for Transforming India (NITI)
Aayog announced the reduction activities for decreasing low carbon initiative would cost around
USD 834 billion till 2030
Are Green Funds Profitable?
 While profit is not the only goal for green investing, some studies have found that funds with ESG
criteria are competitive with the returns of more traditional funds. A Morningstar analysis of 4,900
funds over ten years found that 58.8% of sustainable funds "have beaten their average surviving
traditional peer." In the same analysis, sustainable funds delivered an average annual return of 6.9%,
compared with 6.3% from more traditional funds.

6. MAJOR THREATS TO ENVIRONMENT
• POLLUTION
• GLOBAL WARMING

7.  OVER POPULATION (INCREASED CARBON FOOTPRINT)
 OZONE DEPLETION
 DEFORESTATION

8.  WASTE DISPOSAL
 OCEAN ACIDIFICATION

9.  NATURAL RESOURSES DRAIN
 PUBLIC HEALTH ISSUE DUE TO
UNCLEAN WATER

10. ACT & AUTHORITIES
• The Air (Prevention and Control of Pollution) Act, 1981
• The Water (Prevention and Control of Pollution) Act, 1974
• The Environment Protection Act, 1986
• The Hazardous Waste Management Regulations
 Namami Gange Program’ was approved by the union government. The Centre
allocated a total of Rs 20,000 crore to conserve and rejuvenate the river.
 the Green Skill Development Program was launched in June 2017 by the
Ministry of Environment, Forest, and Climate Change.
 Compensatory Afforestation Fund Act (CAMPA) in 2016. It also
established National Compensatory Afforestation Fund and State
Compensatory Afforestation Fund the same year. Under this act, any
individual or orgnisation intending to use forest lands for non-forest purposes
will be charged.

11. AWARENESS ABOUT ENVIRONMENT
PROTECTION
 ADVERTISEMENTS IN TELEVISIONS AND ON SOCIAL MEDIA
 ENVIROMENT SUBJECTS
 EDUCATE PEOPLE WITH GO GREEN
 CHALLAN ON VEHICLES, INDUSTRIES FOR POLLUTION
 ODD EVEN POLICY ON VECHICLES

12. Types of Green Funds
 Green funds invest in several areas, such as renewable energy, and buildings and
efficiency sectors. The renewable energy sector is a broad one, including solar energy,
wind, battery, and energy storage technologies, as well as the materials that help make
those technologies possible.
 The buildings sector includes builders who use energy-efficient materials, making each
building's carbon footprint smaller—whether they're being used for commercial,
residential, or office use.
 Socially conscious investing has continued to gain in popularity, largely due to increased
worldwide exposure to the issue of climate change, as well as increased federal funding
for alternative energy and other programs. Since 2009, the Green Transition Scoreboard,
a project run by Ethical Markets Media, has tracked a cumulative $10.39
trillion invested in the green economy through the end of 2019.1
 Some of the green mutual funds that are available include the TIAA-CREF Social Choice
Equity Fund (TICRX), the Trillium ESG Global Equity Fund (PORTX), and the Green
Century Balanced Fund (GCBLX).
$10.39 TRILLION
The total investment in the green economy between 2009 and 2019.

13.  Increasing environmental concerns both at countrywide and international level; it has
become significant for the finance sector to become reactive to these environmental
issues.
 Green finance means investing in projects that protect our natural environment from
further degradation. It is mandatory for the sectors like waste management, water
conservation, renewable energy, public transport and biodiversity as environment-
friendly.
 For that they have to come up with the concept of green finance. Water, air and soil
are the valuable resources that we need to save for our future generations.
Sustainable development is very important as it fulfill the need of the society and
protect the natural resources leads to the moral coordination between humanity and
the natural resources.
 Green finance is one of the emerging financial investment pattern that giving priority
for the environment as well as society. Hence it is important to know how far investors
are aware about new financing pattern that is “green finance” and how it is impacting
our sustainable development of our country. This paper tried to access the recent
trends and future scope of Green Finance in India

14.  Green Financial Products and Services in India
 Green Bond: green bond is a debt instrument similar to other bonds only the difference in
the amount receved from this bond should be used for energy efficient projects relating to
renewable energy, emission reduction, reforestation, etc. in the year 2014 IRDA (Indian
Renewable Energy Development Agency) has issues a tax free bond for Rs. 1000 each. This
green bond has been issued for the period of 10, 15 and 20 years and terms carrying
interest rates at 8.16%, 8.55% and 8.55% p.a. respectively. CARE and Brick Works gave it
AAA rating for this bond. Also Yes bank issues 10 years green infrastructure bond in the
year 2015 to raising an amount of rupees 1000 crores.

15. GREEN BOND
Green Bonds The importance of establishing
standardized criteria for project eligibility; having
minimum financial characteristics such as size, rating
and structure; and applying rigorous governance and
due diligence project finance to aid index providers
in putting green bonds on a fixed income ‘Green
Index’
How does a green bond work?
Green bonds work just like any other corporate or
government bond. Borrowers issue these securities
in order to secure financing for projects that will
have a positive environmental impact, such as
ecosystem restoration or reducing pollution.
Investors who purchase these bonds can expect to
make as the bond matures.

16.  The world's first ever green bond was issued back in 2007 by the European
Investment Bank (EIB). EIB pioneered the green bonds market under the
label of Climate Awareness Bond (CAB). This was followed by the World
Bank issuing its first green bond in 2008 in partnership with SEB
 NEW DELHI: Regulator Sebi has finalised norms for issuance and listing of green
bonds, which will help in raising funds from capital markets for investment in the
renewable energy space.
The rules have been finalised by the Securities and Exchange Board of India (Sebi)
after taking into account inputs from the finance and environment ministries
 According to SEBI, funds are classified as ‘green’ only if the funds raised are utilized for
eight broad categories that include renewable energy, clean transportation, sustainable water
management, biodiversity conservation, etc.
 The six objectives include climate change mitigation, climate change adaptation,
sustainable use of water and marine resources, transition to a circular economy, waste
prevention and recycling, pollution prevention and control, and protection of healthy
ecosystems

17. What is green bond issuance?
It was in 2015 that India stepped
into the green bond market with
YES Bank issuing the first green
bond for financing the renewable
and clean energy projects. ... The
lack of sector diversification in
green bond issuances limits
finance of unconventional climate
projects
Norway, the city of Oslo has issued
the biggest green bond of the
country,
THE WORLD BANK =Since 2008,
issued approximately USD 16
billion equivalent in Green
Bonds through over 185 bonds in
23 currencies (as of 5/2021).

18. Green Insurance: In India at currently HSBC cooperated with Allianz to offer its customers with green
reinvestment insurance. It provides cover to buildings obtaining certification from international
environmental standards such as US LEED (Leadership in Energy and Environmental Design) and
BREEAM.
Green insurance incentives for motor vehicles
Fossil fuels deplete our resources and contribute to pollution—and many insurers offer discounts for
vehicles that don't gas guzzle.
Hybrid vehicle premium discounts
Alternative fuel premium discounts, which apply if your car uses an alternative energy source such as
biodiesel, electricity, natural gas, hydrogen or ethanol.
Green insurance for homes
•Premium discounts for LEED certified homes.
•Eco-friendly replacement materials endorsements
For example, some companies will pay homeowners extra if they recycle debris rather than send
destroyed materials straight to a landfill, and replace old kilowatt-hungry appliances with Energy Star
machines, which meet an energy-savings rating created by a joint program of the U.S. Environmental
Protection Agency and the Department of Energy.
•Broad coverage for alternative energy sources. For homeowners who generate their own geothermal,
solar or wind power and sell any surplus energy back to the local power grid
.

19.  Green insurance for businesses
• Cover installing "green" building systems and materials to replace the standard ones,
after a loss. These eco-friendly replacements would include energy efficient electrical
equipment and interior lighting, water conserving plumbing and nontoxic, low odor
paints and carpeting.
• Allow "green certified" rebuilding in the event of a total loss. In addition to the
building itself, this coverage may pay for engineering inspections of heating,
ventilation, air-conditioning systems, building recertification fees, replacement of
vegetative or plant covered roofs and debris recycling and loss of income and costs
incurred when alternative energy generating equipment is damaged.

20.  Green Loan Schemes: Commercial banks are issuing Green Loans financing
scheme to the public at concessional interest rates to promote and support investment
in energy efficient projects. Green Home Bank loan scheme has been initiated by State
Bank of India at low interest rate to encourage the customers to opt Green housing i.e.
the buildings that are certified by rating agencies such as Leadership in Energy &
Environmental Design (LEED) India, India Green Building Council (IGBC) and TERI –
GRIHA from TERI- BCSD India. Vehicle finance scheme has initiated by ICICI which aims
at decrease the interest rate by 50 percentage on the loans taken by the public on
buying of cars employing renewable sources of energy. Union Bank of India offers
schemes extending loans to farmers for purchase of solar water heaters, solar water
pumps and installing of solar home lighting system.

21. GREEN BANKS
 Who is the owner of Green Bank?
 Ian Hirst - CEO
 Green Banks are mission-driven institutions that use innovative financing to accelerate the
transition to clean energy and fight climate change
 CGC engages government, philanthropy, impact investors and commercial capital providers
to secure both operating funds and loan capital for green banks.
 Green banks use financing, not grants. Financing means that capital is eventually expected
to be returned or repaid, and this helps to maximize the impact of each dollar that a green
bank deploys.
 Green banks use are aimed at reducing these costs and making capital more affordable
and available to clean energy projects.
 Which are the green banks?
 When doing research about the most ethical banks in the UK there are 3 that crop up
quite a lot – The Co-operative Bank, Triodos Bank and Charity Bank
 CGC worked closely with policymakers and market participants to support green bank
formation across the country, including in:
• Connecticut
• New York
• Rhode Island
• California
• Nevada
• Colorado
• Montgomery County, Maryland
• The District of Columbia

22. • Green bank institutions directly supported by CGC have collectively mobilized
nearly $3 billion in public and private capital into clean energy projects. And CGC
is working across many other jurisdictions today to evaluate green bank
opportunities and support implementation
• What are the benefits of green banking?
• Green banks gives more importance to environmental friendly factors like
ecological gains thus interest on loan is comparatively less. Generate Clean and
hygienic environment Environmental conservation and protection of ecological
balance

23. EXAMPLE OF GREEN FUND PROJECTS IN
INDIA
 Ground Water Recharge and Solar Micro Irrigation to Ensure Food Security and
Enhance Resilience in Vulnerable Tribal Areas of Odisha
 Green Growth Equity Fund
 Enhancing climate resilience of India’s coastal communities
 Line of Credit for Solar rooftop segment for commercial, industrial and residential
housing sectors

24. GCF WORKS WITH A WIDE RANGE OF
PATNERS IN NATIONAL ,REGIONAL,
INTERNATIONAL LEVEL. FEW ACCREDITED
ENTITES ARE:
IDFC BANK LTD
ENVIORNMENT INVESTMENT BANK
NABARD (NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT)
SIBDI SMALL INDRUSTRIES DEVELOPMENT BANKS OF INDIA
YES BANK LTD
ASIAN DEVELOPMENT BANK
EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT(EBRD)

25. ALLOCATION
CENTRAL POLLLUTION CONTROL BOARD = Rs 100 CRORES
COMMON EFFLUENT TREATMENT PLANTS = Rs 2.5 CRORES
CLEAN TECHNOLOGY = Rs 1.23 CRORES
BOTANICAL SURVEY OF INDIA = Rs 21 CRORES
ZOOLOGICAL SURVEY OF INIDA = Rs 82 CRORES
ENVIRONMENT PROTECTION AGENCY OF USA = $9.23 MILLION
WHO BUDGET FOR GREEN FUNDING = $5,840 MILLION
THE WORLD BANK =Since 2008, issued approximately USD 16
billion equivalent in Green Bonds through over 185 bonds in 23
currencies (as of 5/2021).

26.  The $8.5 billion Climate Investment Funds is working with the World Bank and the African Development Bank
to support a large-scale distributed battery storage program with Eskom in South Africa
 As part of a $775 million partnership, the $8.5 billion Climate Investment Funds is helping India expand its
rooftop solar industry. In less than a year, the program has enabled close to 500 MW of new rooftop solar
capacity. It is estimated that rooftop solar alone can save almost 2 billion tons of CO2 emissions and lead to
nearly 50,000 jobs
 In 2021, IFC supported one of India's leading renewable energy developers, Continuum Green Energy Ltd,
to anchor its first green bond to help reduce greenhouse gas emissions and support a resilient recovery from
COVID-19. The offering raised US$561 million and was heavily oversubscribe.
 In Dakar, Senegal, we are working with partners to help develop a new transport system aimed at moving
300,000 passengers per day. The Dakar Bus Rapid Transit (BRT) Pilot Project will improve travel conditions
and reduce by half the average rush hour in-vehicle travel time by public transport. Senegal's NDC lists the
BRT as central to reducing the country’s transport-related carbon emissions
 In January 2020, a vehicle scrapping and recycling program in Egypt supported by World Bank’s Carbon
Partnership Facility (CPF) delivered This project has reduced accidents as well as pollutants affecting air
quality and human health
 The World Bank’s forest and land use funds work to provide results-based payments for the reduction GHG
emissions from the forest and land use sectors. These funds work across nearly 50 countries and have a
combined capital of over $1.65 billion. In addition to the focus on implementation and readiness for reducing
emissions from deforestation and forest degradation and developing sustainable land use activities

27. CONTRIBUTION FROM CORPORATE
WORLD
 TATA RS 600 CRORES
 PLANTATION, CONSTRUCTION OF DEER PARK ,
REFORESTRATION RS 30 MILLION
 FORD MORTORS RS $1.71 MILLION FOR
ENVIRONMENT PROTECTION
 RELIANCE unveiled a $10 billion green energy plan
in its drive to become a net carbon zero company
by 2035

28. GREEN TAXES
 ENVIRONMENT TAXES TO MAKE POLLUTION AND DEPLETION OF NATURAL
RESOURSES MORE EXPENSIVE AND GIVING INCENTIVES FOR ENVIORNMENT
PROTECTION (Green tax is also called pollution tax or environmental
tax and is the tax levied on all the goods that cause environmental pollution)
 TYPE OF ENVIORNMENT TAXES
 Industrial pollution taxes
 Individual revenue-based taxes
 Incentive taxation
EXAMPLE
 Transport vehicles older than eight years could be charged the Green Tax at
the time of renewal of fitness certificate at the rate of 10 to 25 per cent of the
road tax, and personal vehicles are to be charged Green Tax at the time of
renewal of Registration Certification after 15 years, the proposal said.

29. Top performing ESG companies in India
& how are their stocks faring
1 Havells India and Godrej Consumer Products ; two renewable energy initiatives --
biomass and solar lamps -- and four resource conservation initiatives across all its plants
and Godrej has successfully increased its renewable energy portfolio to 30 per cent,
achieved 37 per cent reduction in specific greenhouse gas emissions,
2 P&G introduced Fairy Ocean Plastic bottles ; which are made of 10 per cent ocean
plastic and 90 per cent post-consumer recycled plastic
3 UltraTech has integrated low carbon strategy
4 Asian Paints, Project NEW (N- natural resource conservation, E- energy and
emission reduction, W- waste reduction)
5 PI Industries agrochemicals company ; direct seeding of rice (DSR) technique across
675,000 hectares of land, thus conserving 355 billion gallons of water and saving 25-30
per cent costs related to irrigation and energy

30. INDIAN STARTUPS & PROJECTS THAT ARE
HELPING THE COUNTRY GO GREEN
 1.Digital Green – Multimedia solutions for rural
education, improved agricultural practices
 2. Waste1 Ventures – Waste management
 3. Fourth Partner Energy – Making solar energy
accessible
 4.Banyan Nation – Recycling plastic
 5. Say Trees – Tree plantation drives
 6. D&D Ecotech – Rainwater harvesting
 7.Green Ventures – Sustainable energy solutions

31. FUNDING AVENUES FOR INDIAN GREEN START
UP
 The quantum of green, social and
sustainability instruments in 2020
has steadily risen to $700 billion .
Among the VC firms that
participated in these rounds,
 four of them — Circulate Capital,
Blue Ashwa Capital, ADB Ventures
and Amazon Climate Pledge Fund

32. SUBSIDIES BY INDIAN GOVT
 Financial subsidy is provided from the Air Ambient fund, created by levying 25 paisa
per liter of Diesel (Diesel Case) with the objective of utilizing the collect amount
towards clean environment movement.
 The government announced a 40% subsidy for up to 3 kW system. The subsidy is
available for residential homeowners who install on-grid solar systems.
 The delhi government had announced a subsidy of ₹1.5 lakh (₹10,000 per kWh of
battery capacity) for the first 1,000 electric four-wheelers. A subsidy of up to ₹30,000
(₹5,000 per kWh of battery capacity) was to be given on the purchase of each electric
two-wheeler, auto-rickshaw, rickshaw and freight vehicle.
 Also, those buying electric vehicles are to be exempted from paying road tax and
registration fee. At present, road tax ranges from 4% to 10% of the cost of the vehicle,
while the registration fee is about ₹3,000 per vehicle.
 With an emphasis on introducing electric cars in India, the State Bank of India (‘SBI’)
has introduced green car loans with lower interest rates and longer repayment
windows. Even more, the Ministry of Corporate Affairs has mandated reporting
progress on Corporate Social Responsibility (‘CSR’) as per the Companies Act, 2013.

33. India’s largest renewable energy companies:

34. National Action Plan for Climate Change (NAPCC)
Is a Government of India's programme launched in 2008 to mitigate
and adapt to the adverse impact of climate change. The action plan
was launched in 2008 with 8 sub-missions. The plan aims at fulfilling
India's developmental objectives with focus on reducing emission
intensity of its economy. The plan will rely on the support from the
developed countries with the prime focus of keeping its carbon
emissions below the developed economies at any point of time. The
8 missions under NAPCC are as follows:
• National Solar Mission
• National Mission for Enhanced Energy Efficiency
• National Mission on Sustainable Habitat
• National Water Mission
• National Mission for Sustaining Himalayan Ecosystem
• Green India Mission
• National Mission for Sustainable Agriculture
• National Mission on Strategic Knowledge for Climate Change

35. What is the future scope of Green Finance in India?
As per the India’s National Action Plan on Climate Change the country should generate at
least 15% power from renewable energy resources by 2021. Environment sustainability
being a key issue at global level has increased the scope for investment in green projects
utilizing renewable energy resources. Therefore, many banks and financial institutions
would look forward to tapping this growing sector. Thus, there will be increase in demand
for Green bonds and structured green funds. Green finance is a core part of low carbon
green growth because it connects the financial industry, environmental improvement and
economic growth of the country. The main challenge in green finance is to balance the
needs of economic growth and social development, while taking decision on finance with
least environmental impact

36. CONCLUSION: The Green Mutual Funds
have been gaining popularity recently as more and more
investors are starting to think about the environment.
Increasing oil consumption, global warming effects,
increasing rates of natural disasters, and similar other
factors are now leading many investors to think that if we
don’t start taking care of the environment, this Earth may
not be a very nice place in the near future. Hence, Green
Mutual Funds are gaining popularity. However, Green
Funds as an investment option depends upon what you
are looking at in terms of returns and how the fund
manager of the Green Mutual fund play around with the
money of the investors. As per the details available on
various sites on internet, there are about 65 SRI or
Socially Responsible Investment Funds, which “claim” to
be Socially Responsible. Out of these, there are only SIX
funds which can be really classified as Green Mutual
Funds

37. ”
“The Earth has enough resources for
our need but not for our greed.”
MAHATAMA GANDHI