2025, Vol. 6, Issue 2, Part O
Green bonds and sustainable finance in India: Pricing, additionality and project outcomes
Author(s): K Lakshmana Rao
Abstract: Green bonds are intended to channel capital to projects with environmental benefits, but doubts persist about whether labelled green debt finances genuinely incremental green investments or merely refinances pre-existing (brown) assets. This paper studies the Indian green bond market’s pricing dynamics (the “greenium”), regulatory framework, and evidence on additionality and project outcomes. Using official issuance data (Climate Bonds Initiative), Indian regulatory texts (SEBI, Department of Economic Affairs), and empirical literature on green bond pricing and additionality, we ask whether labelled issues in India and internationally fund net new green projects. Our findings suggest mixed evidence: recent sovereign and corporate green issuance in India expanded the sustainable debt market substantially, but marketplace signals (mixed greenium, some auction devolvements) and the literature indicate that additionality varies by issuer type, third-party review quality, and the project pipeline. We propose tightened disclosure, standardized impact reporting, stronger third-party reviewer rules, and incentives for true incremental project financing.
DOI: 10.22271/27084515.2025.v6.i2o.860
Pages: 1350-1353 | Views: 156 | Downloads: 114
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How to cite this article:
K Lakshmana Rao. Green bonds and sustainable finance in India: Pricing, additionality and project outcomes. Asian J Manage Commerce 2025;6(2):1350-1353. DOI: 10.22271/27084515.2025.v6.i2o.860
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