22 D CCP GREEN FINANCE
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Certified Credit Professional — Certified Credit Professional.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is Green Finance in the context of Indian banking?
Green Finance refers to financial flows from banking, micro-credit, insurance, and investment that support environmentally sustainable economic activities, addressing climate change and ecological conservation goals.
What is the primary purpose of a Green Loan as per LMA Green Loan Principles?
To finance or refinance eligible green projects exclusively.
Which RBI initiative mandates banks to disclose climate-related financial risks?
RBI's Disclosure Framework on Climate-related Financial Risks, aligned with TCFD recommendations, requires banks to disclose physical and transition risks arising from climate change in their annual reports.
What does the term 'greenwashing' mean in the context of sustainable finance?
Misleadingly claiming environmental benefits for financial products or projects.
What are Green Bonds and who regulates them in India?
Green Bonds are debt instruments where proceeds are exclusively used for green projects such as renewable energy and clean transport; in India they are regulated by SEBI under its Green Bond Framework.
What is a Sustainability-Linked Bond (SLB) and how does it differ from a Green Bond?
SLB ties coupon rates to ESG targets, not specific project use of proceeds.
What is the full form of TCFD and its relevance to banks?
TCFD stands for Task Force on Climate-related Financial Disclosures; it provides a framework for banks to disclose governance, strategy, risk management, and metrics related to climate-related financial risks.
What is the role of the Network for Greening the Financial System (NGFS)?
Global central bank network promoting climate risk management in finance.
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