Asia Pacific Sustainability Index 2021 Flashcards
Why in News?
The Asia Pacific Sustainability Index 2021 was recently launched by Knight Frank, which is a Global property consultant.
Highlights
In the index, four Indian cities viz., Bengaluru, Hyderabad, Delhi, and Mumbai, have been ranked among top 20 sustainable cities.
In it, 36 cities were ranked on the basis of urbanisation pressure, carbon emissions, climate risk, and government initiatives.
Rank of World’s cities
Index has been topped by Singapore.
It is followed by Sydney, Wellington, Perth, and Melbourne.
These are the top five green-rated cities in commercial real estate in Asia-Pacific region.
Rank of Indian cities
Among the Indian cities, Bengaluru was ranked first. While in the Asia-Pacific region, it has been ranked 14th.
Bengaluru is the only Indian city to achieve ‘Gold’ standard category.
Bengaluru is followed by Delhi, which has been ranked 17th in the ASIA Pacific Region.
Hyderabad has been ranked 3rd in India and 18th in Asia-Pacific region.
Mumbai is ranked 4th among Indian cities and 20th in Asia-pacific region.
Rank of Indian cities
Among the Indian cities, Bengaluru was ranked first. While in the Asia-Pacific region, it has been ranked 14th.
Bengaluru is the only Indian city to achieve ‘Gold’ standard category.
Bengaluru is followed by Delhi, which has been ranked 17th in the ASIA Pacific Region.
Hyderabad has been ranked 3rd in India and 18th in Asia-Pacific region.
Mumbai is ranked 4th among Indian cities and 20th in Asia-pacific region.
What is the reason of growth of sustainable development in India?
Sustainable Development in India have been propelled due to new market dynamics. Global commitment towards carbon neutrality and net zero focus on creating environmentally friendly premises. This has led Indian developers to develop their products to meet the requirements.
Green Bond in India
As per report, green bond issuances in India have increased by 523% on yearly basis. It was USD 1.1 billion in 2020 and has increased to USD 6.8 billion in 2021. Currently, India has become the sixth-largest country in Asia-Pacific region, with respect to total amount of green bonds issued in 2021.
Green Bond Issuance in Asia-Pacific Region
As per estimates of Climate Bonds Initiative, in 2021 the region issued USD 126 billion in green bonds. China accounted for largest amount of USD 68 billion.
Key Indicators for Asia and the Pacific 2021
Recently, Asian Development Bank (ADB) released a report titled as the Key Indicators for Asia and the Pacific 2021.
The report demonstrated that the region made substantial progress in the last two decades with respect to several development targets.
It presents comprehensive economic, financial, social and environmental statistics for ADB’s 49 regional members.
Asian Development Bank
About:
It is a regional development bank established in 1966. It has 68 members. India is a founding member.
49 are from within Asia and the Pacific and 19 outside.
As of 31st December 2019, ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
Aim:
To promote social and economic development in Asia and the Pacific.
Headquarters:
Manila, Philippines.
WHAT IS GREEN BOND?
Green bonds are financial instruments that generate proceeds for investment in environmentally sustainable and climate-suitable projects. By virtue of their indication towards environmental sustainability, green bonds command a relatively lower cost of capital vis-à-vis regular bonds and necessitates credibility and commitments associated with the process of raising bonds.
Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman approves the final Sovereign Green Bonds framework of India. This approval will further strengthen India’s commitment towards its Nationally Determined Contribution (NDCs) targets, adopted under the Paris Agreement, and help in attracting global and domestic investments in eligible green projects. The proceeds generated from issuance of such bonds will be deployed in Public Sector projects which help in reducing carbon intensity of the economy.
The Framework comes close on the footsteps of India’s commitments under “Panchamrit” as elucidated by the Prime Minister, Shri Narendra Modi, at COP26 at Glasgow in November, 2021.
The approval is fulfillment of the announcement in the Union Budget FY 2022-23 by the Union Finance Minister that Sovereign Green Bonds will be issued for mobilising resources for green projects.
Green Bonds
It is a debt instrument
according to RBI, the cost of issuing a green bond has generally remained higher than other bonds in INDIA.
green bonds enhance an issuer’s reputation, as it helps in showcasing their commitment towards sustainable developement.
green bonds are issued by companies, countries and multilateral orgs. to bexclusively fund projects that have positive environmental or climate benefits.
the proojects can include renewable energy, clean transportation and green buildings, among others.
by the end of 2020, 24 national govts. had issued sovereign green, social and sustainability bonds.
ADVANTAGES of GREEN BONDS
The interest rates on such binds is less than the loans from commercial banks.
first green bonds was issued by WORLD BANK in 2008.
Poland and France issued first green bonds in 2017.
types of green bonds:GREEN SECURITIZED bond, USE OF PROCEEDS GREEN REVENUE BOND, USE OF PROCEEDS GREEN BOND
