A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called :
- A.Green Bond
- B.Social Bond
- C.Sustainability Bond
- D.Sovereign Bond
Correct answer
Explanation
The correct answer is C, Sustainability Bond. A sustainability bond funds a mix of green and social projects from the same issue. The International Capital Market Association, whose principles most issuers follow, divides labelled bonds by the use of the money raised. A green bond funds only projects with environmental benefits, such as renewable energy, clean transport or pollution control. A social bond funds only projects with social outcomes, such as affordable housing, health care, education or jobs for weaker groups. When the proceeds go to a combination of both kinds of project, the bond is called a sustainability bond, and it follows the Sustainability Bond Guidelines. Option A is wrong because a green bond is limited to environmental projects. Option B is wrong because a social bond is limited to social projects. Option D is wrong because a sovereign bond is defined by its issuer, a national government, not by how the money is used; India's sovereign green bonds are one example. Exam tip: green = environment, social = society, sustainability = both; sovereign = issued by the government.
Practice Questions
View allThe Partnership for Action on Green Economy (PAGE), a UN mechanism to assist countries transition towards greener and more inclusive economies, emerged at
- A.The Earth Summit on Sustainable Development 2002, Johannesburg
- B.The United Nations Conference on Sustainable Development 2012, Rio de Janeiro
- C.The United Nations Framework Convention on Climate Change 2015, Paris
- D.The World Sustainable Development Summit 2016, New Delhi
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PAGE was launched in 2013 as a direct response to the call made at the Rio+20 conference of June 2012, whose outcome document, 'The Future We Want', recognised the green economy as a tool for sustainable development and poverty eradication.
Read the full explanation →With reference to Indian laws about wildlife protection, consider the following statements : 1. Wild animals are the sole property of the government. 2. When a wild animal is declared protected, such animal is entitled for equal protection whether it is found in protected areas or outside. 3. Apprehension of a protected wild animal becoming a danger to human life is sufficient ground for its capture or killing. Which of the statements given above is/are correct?
- A.1 and 2
- B.2 only
- C.1 and 3
- D.3 only
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Under the Wildlife (Protection) Act, 1972, wild animals belong to the government and a protected animal is protected everywhere, but mere fear of danger does not justify killing it.
Read the full explanation →Which of the following is/are the possible consequence/s of heavy sand mining in riverbeds? 1. Decreased salinity in the river 2. Pollution of groundwater 3. Lowering of the water-table Select the correct answer using the code given below :
- A.1 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
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Heavy sand mining lowers the water table and exposes groundwater to pollution, but it does not reduce river salinity. Riverbed sand acts as a sponge and a filter: it stores water, recharges the aquifers along the river and cleans water as it seeps down.
Read the full explanation →The term 'M-STrIPES' is sometimes seen in the news in the context of
- A.Captive breeding of Wild Fauna
- B.Maintenance of Tiger Reserves
- C.Indigenous Satellite Navigation System
- D.Security of National Highways
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M-STrIPES stands for Monitoring System for Tigers: Intensive Protection and Ecological Status. It was introduced by the National Tiger Conservation Authority around 2010, with technical support from the Wildlife Institute of India, for use in tiger reserves.
Read the full explanation →In India, 'extended producer responsibility' was introduced as an important feature in which of the following?
- A.The Bio-medical Waste (Management and Handling) Rules, 1998
- B.The Recycled Plastic (Manufacturing and Usage) Rules, 1999
- C.The e-Waste (Management and Handling) Rules, 2011
- D.The Food Safety and Standard Regulations, 2011
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These rules, notified under the Environment (Protection) Act, 1986 and in force from May 2012, made extended producer responsibility, or EPR, their central feature.
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