Comprehension

Read the following passage carefully:
1. India has aimed to reduce the country’s carbon intensity by approximately 45 percent by 2030. To achieve this, ‘Green finance’ plays a vital role. At the initial stages, green finance needs a big push from the government. The Indian government has identified projects worth Rs. 25,000 crore that will be financed by proceeds from Sovereign Green Bonds.
2. According to the framework approved by the finance ministry, the sovereign green bonds will focus on financing public projects including renewable energy, climate change, clean transportation, sustainable water and waste management, and pollution control.
3. Businesses that take green finance can benefit in various ways. It can help them follow different environmental norms and regulations, thus avoiding possible fines. Adopting sustainable developmental practices enhances the brand value of businesses. Customers tend to prefer brands that adopt clear sustainable development practices. The energy-efficient and other sustainable development practices promoted by green finance also often help in saving costs and boosting the profitability of businesses.
4. -The Economic Times, April 22, 2023 (Modified) On the basis of the given text and common understanding, answer the following questions:

Question: 1

Define sustainable development.

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Sustainable development = Balance between {Economic, Social, and Environmental} dimensions.
Updated On: Feb 3, 2025
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Solution and Explanation

Sustainable development is a development process that meets the needs of the present without compromising the ability of future generations to meet their own needs. It focuses on balancing economic growth, social inclusion, and environmental protection.
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Question: 2

State the public project areas where Sovereign Green Bonds are focused.

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Remember "Renewables, Efficiency, Conservation, and Climate Action" for Sovereign Green Bond projects.
Updated On: Feb 3, 2025
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Solution and Explanation

Sovereign Green Bonds finance projects with positive environmental impacts. Key areas of focus include: Renewable energy (solar, wind, and hydroelectric projects) Energy-efficient infrastructure (green buildings) Public transport systems to reduce carbon emissions Sustainable agriculture and land management Climate adaptation and mitigation measures Biodiversity and ecosystem conservation
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Question: 3

How can businesses benefit from green finance?

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Green finance helps businesses save costs, improve brand image, and stay ahead of regulations.
Updated On: Feb 3, 2025
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Solution and Explanation

Businesses can benefit from green finance in the following ways: 
Access to Capital: Funds for environmentally sustainable projects. 
Lower Financing Costs: Reduced interest rates on green bonds. 
Enhanced Brand Image: Improved reputation as a socially responsible entity. 
Regulatory Compliance: Better alignment with environmental regulations. 
Long-term Resilience: Improved ability to manage environmental risks

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