 Sovereign green bonds what comes to your mind when I say the word bond James Bond, right? But we are not going to discuss about James Bond in this video. See sovereign green bonds. They finance the environment friendly projects So if you want to know more about sovereign green bonds, which are the superstars in the field of environment Watch this video fully See the issuance of sovereign green bond was announced in Union budget 2022-23 see it was announced as a part of government's overall market borrowings That is these bonds will be issued by the government and the proceeds from these bonds will be used in the environment friendly public sector projects So what is the result of this these bonds and the proceeds from these bonds will help in decreasing the carbon intensity of the economy and that is exactly why sovereign green bonds were announced in Union budget 2022-23 and know that the government has unveiled a record borrowing of rupees 14.95 trillion in financial year 2022-2023 See these green bonds they help in attaining ambitious targets decided by the government For example, it helps in achieving 175 gigawatt of renewable energy capacity by the year 2022 And it will also help in achieving net zero carbon emissions by the year 2070 see these bonds they are used in funding the green projects green project classification is based on the following principles Firstly such project should encourage energy efficiency in resource utilization Secondly such project should reduce the carbon emissions and green house gases and thirdly It should promote climate resilience or the adaptation and finally It should value and improve the natural ecosystems and bio diversity Especially in accordance with the sustainable development goal principles So this is about the sovereign green bonds now Let us move on to the categories for which the proceeds raised from these sovereign green bonds will be used and the eligible categories include renewable energy energy efficiency clean transportation climate change adaptation Sustainable water and waste management pollution prevention and control green buildings Sustainable management of living natural resources and land use Terrestrial and aquatic biodiversity conservation Here you can see that the expenditures that are directly related to the fossil fuel are excluded and also remember For the process of project evaluation and selection Ministry of finance has constituted a green finance working committee with representation from relevant ministries Know that it is chaired by chief economic advisor and this committee will meet at least twice a year to support the ministry of finance With the selection and evaluation of projects see here Initial evaluation of the project will be the responsibility of the concerned ministry in Consultation with the experts now look at this image here in this image You can see the procedure for selection of eligible green expenditure and the image also mentions about the Composition of green finance working committee. So just have a look at this So this is all about the eligible categories of projects for which proceeds raised from the sovereign green bonds will be utilized So viewers, I hope you understood about sovereign green bond and what is green project and the eligible Categories for which the proceeds raised from the sovereign green bond will be used And if you want to know more interesting topics like this subscribe to Shankarayez Academy's YouTube channel And if you are an UPSC aspirant and you want to know more about climate change related facts and Climate change adaptation measures then watch daily Hindi news analysis of Shankarayez Academy. Thank you