The financial instruments that generate proceeds for investment in environmentally sustainable and climate-suitable projects are called as :
- A.Green Bonds
- B.Carbon Bonds
- C.Climate Credit Bonds
- D.Social Impact Bonds
Correct answer
Explanation
The correct answer is A, Green Bonds. A green bond is a debt instrument whose money can be spent only on projects that help the environment or the climate.
Like any bond, it lets an issuer borrow from investors and repay them with interest, but the proceeds are earmarked for things such as solar and wind power, clean transport, energy efficiency and water management. The European Investment Bank issued the first such bond in 2007 and the World Bank followed in 2008. In India, the Government of India first issued Sovereign Green Bonds in January 2023 through the Reserve Bank of India.
Option B is wrong because carbon bonds are not the standard name for this instrument; carbon markets trade credits, not bonds. Option C is wrong because 'climate credit bonds' is not a recognised class of security. Option D is wrong because social impact bonds pay investors for meeting social outcomes such as health or education, not for green projects.
Exam tip: Green bonds fund green projects; India's first sovereign green bonds came in 2023.
Practice Questions
View allFor acid rain, the pH of rain water should be less than
- A.7.0
- B.6.6
- C.5.6
- D.8.0
Show answer
Rain is called acid rain when its pH falls below 5.6. Even clean rain is slightly acidic, because carbon dioxide in the air dissolves in it and forms weak carbonic acid, which brings its pH down to about 5.6.
Read the full explanation →Which one of the following statements with regard to ozone is not correct?
- A.Ozone is found mostly at 15-55 km in the atmosphere.
- B.Ozone is produced by gaseous chemical reactions.
- C.16th November is celebrated as the International Day for the Preservation of the Ozone Layer.
- D.Ozone is a form of oxygen in which three oxygen atoms are bounded together.
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The International Day for the Preservation of the Ozone Layer is observed on 16 September, not 16 November. The date marks the signing of the Montreal Protocol on 16 September 1987, the treaty that phased out chlorofluorocarbons and other ozone-depleting substances.
Read the full explanation →Energy and nutrients flow from one trophic level to another in an ecosystem. Which one of the following statements correctly describes the direction of flow of energy and nutrients in an ecosystem ?
- A.Energy flow is cyclic and nutrient flow is unidirectional.
- B.Energy flow is unidirectional and nutrient flow is cyclic.
- C.Both energy and nutrient flow are unidirectional.
- D.Both energy and nutrient flow are cyclic.
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Energy passes one way from the Sun through the food chain and is lost as heat, while nutrients are used again and again.
Read the full explanation →UNESCO World Heritage site Nanda Devi National Park is located in which one of the following States ?
- A.Arunachal Pradesh
- B.Uttarakhand
- C.Himachal Pradesh
- D.Sikkim
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Nanda Devi National Park lies in the Chamoli district of Uttarakhand, around India's second-highest peak, Nanda Devi. The park is a vast glacial basin ringed by high peaks and was inscribed on the UNESCO World Heritage list in 1988 for its wild, untouched landscape.
Read the full explanation →Which one of the following is related to global dimming?
- A.Fall of atmospheric pressure due to increased particulates
- B.Rise of atmospheric pressure due to increased particulates
- C.Rise of temperature due to increased particulates
- D.Fall of temperature due to increased particulates
Show answer
Global dimming is the drop in sunlight reaching the ground, and the cooling that follows, caused by particles in the air.
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