SGF - Sovereign Green Fund
SGF stands for Sovereign Green Fund
SGB stands for Sovereign Green Bonds
New Source of Finance - Introduced in FY 2023-24
SGF comes under Major Head 8235 (General & Other Reserve Funds). Nirbhaya Fund also comes under MH 8235.
Plan Heads to be financed by SGF - PH 2100 - Rolling Stock and PH 8100 - MTP - Metropolitan Transport Projects.
The first two numerals of SGF in the Classification of Capital Expenditure are 35 (maybe 35 taken from the Major Head 8235)
The source of SGF is SGB - Sovereign Green Bonds
SGB - Sovereign Green Bonds:
Launched recently in India in the year 2022
To raise money for Green Infrastructure.
To meet India’s goal - Net-Zero Carbon emissions by 2070
Definition of Green Bond (by World Bank): A Debt security that is issued to raise money for initiatives that are relevant to the environment or the climate.
The First ever Green Bond - issued by the World Bank in 2008
Sectors - Green Buildings, Sustainable Transportation (Metro Rail), Renewable Energy, etc.
NDC stands for Nationally Determined Contribution (A nationally determined contribution is a non-binding national plan highlighting climate change mitigation, including climate-related targets for greenhouse gas emission reductions)
GFWC - Green Finance Working Committee - to look after the issuing of SGB
Investors (of SGB) may offer Tax incentives or Tax exemptions.
Key points for MCQ
SGF stands for Sovereign Green Fund
SGB stands for Sovereign Green Bonds
SGF used for Plan Heads - 2100 (Rolling Stock) and 8100 (MTP - Metropolitan Transport Projects)
Major Head for SGF - 8235 - General & Other Reserve Funds
The first two numerals of SGF in Capital Classification are 35
The Source of SGF is SGB
Net Zero Carbon Emission - India’s Goal to Achieve by 2070
The First-ever issue of Green Bond - 2008 by World Bank
NCD stands for Nationally Determined Contribution
GFWC stands for Green Finance Working Committee
EBR stands for Extra Budgetary Sources
The First two numerals of different sources of Finance in Capital Classification are
Notes
:
It is high time to streamline or restructure all the above Sources of Finance. Because Many Funds are not funded sufficiently by the Government because of poor internal surplus owing to the non-rising of fares in Indian Railways. (in last 12 years)
The objectives of the above Funds are overlapping one other.
It is learned, that the Indian Railways already formed a committee to look into the above issue.
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