2026 · Q40
The financial instruments that generate proceeds for investment in environmentally sustainable and climate-suitable projects are called as :
General KnowledgeIndian Economy
- AGreen Bonds
- BCarbon Bonds
- CClimate Credit Bonds
- DSocial Impact Bonds
Explanation
Green bonds are fixed-income instruments whose proceeds are exclusively earmarked for environmentally sustainable and climate-suitable projects, such as renewable energy and clean transport. Carbon bonds/credits relate to emissions trading, and social impact bonds fund social outcomes, each a distinct instrument. 'Climate credit bonds' is not the standard term for this market. Hence the instruments described are green bonds.