Green And Sustainable Finance
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Business and Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is green finance?
Green finance refers to financial investments and instruments that support environmentally sustainable projects and activities, including renewable energy, clean technology, and pollution control initiatives.
What is a Climate Bond and how does it differ from a green bond?
Climate bonds fund low-carbon projects; green bonds have broader eligible categories.
What are Green Bonds and who issues them in India?
Green bonds are debt instruments whose proceeds are exclusively used for financing environmentally beneficial projects; in India they are issued by corporates, banks, and the government, regulated under SEBI's Green Bond Framework.
What is the role of the Climate Bonds Initiative (CBI) in sustainable finance?
CBI sets standards and certifies bonds meeting climate-aligned criteria globally.
Which RBI circular mandates banks to mainstream climate risk into their risk management frameworks?
RBI's Discussion Paper on Climate Risk and Sustainable Finance (2022) and subsequent guidelines direct banks to integrate physical and transition climate risks into their ICAAP and overall risk management frameworks.
What is an Environmental Impact Report in the context of green bond issuance?
A post-issuance report disclosing actual environmental outcomes of funded projects.
What is the difference between physical risk and transition risk in climate finance?
Physical risk arises from climate events such as floods and droughts that damage assets and disrupt business, while transition risk stems from policy, regulatory, and market changes as economies shift toward a low-carbon model.
What does Scope 1 emission refer to in corporate carbon accounting?
Direct greenhouse gas emissions from sources owned or controlled by the company.
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