Green, Social, and Sustainability Bonds: NSE collaborates with IFC and Climate Bonds Initiative for industry wide knowledge enhancement workshops

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NSE to launch derivatives on Nifty Next 50 Index (NIFTYNXT50) from April 24, 2024
NSE to launch derivatives on Nifty Next 50 Index (NIFTYNXT50) from April 24, 2024

Bengaluru: The National Stock Exchange of India (NSE) is pleased to announce the completion of its inaugural deep-dive workshops specifically designed with focus on various sectors of the Indian industry. These pivotal events were held across two days at different venues: the first in Mumbai on April 3, 2024, and the second in New Delhi on April 5, 2024. These day long workshops titled ‘Deep Dive in Green, Social, and Sustainability (GSS) Bonds Issuance Process’ was a joint effort with the International Finance Corporation (IFC), Climate Bond Initiative (CBI) sponsored by HSBC and The Kingdom of the Netherlands, under the IFC REGIO Technical Assistance facility.

More than a mere workshop, this initiative served as a rallying point for industry leaders, and policymakers to leverage the power of GSS bonds to forge a sustainable future for our markets and society. Designed to enhance knowledge and foster discussions around the burgeoning field of GSS bonds, this program marked a significant stride towards bridging the climate financing gap in India. It provided a comprehensive platform for stakeholders from various sectors to engage in dialogue, share insights, and explore innovative financial mechanisms aimed at achieving sustainable development goals.

The training attracted participants from finance, real sector, and various other industries, delving into the intricacies of GSS bond issuance. Expert-led sessions on finance and sustainability offered in-depth exploration of topics such as overview of the labelled bond universe, labelled bond pre- and post-issuance process, and country-specific context for issuance of GSS bond.

Emphasizing the importance of GSS bonds in advancing India’s sustainability agenda, the training highlighted the critical role of innovative financial instruments in financing and mobilizing resources for green infrastructure. Through case studies and interactive discussions, attendees gained a practical knowledge on how to navigate the landscape of thematic bond issuance and capitalize on emerging opportunities in sustainable finance.

 

Shri K Rajaraman, Chairperson – IFSCA in his insightful address on the significance of GSS Bonds, emphasized, “Addressing the pressing challenge of climate change is paramount, and in India, this necessitates a robust embrace of Green, Social, and Sustainability-linked financial instruments.” He further added that today’s training event represents a pivotal initiative, enhancing awareness and preparedness among individuals and organizations to effectively navigate this landscape. Additionally, he highlighted that with GIFT IFSCA at the forefront, particularly in setting up voluntary carbon credits trading at GIFT IFSCA and contributing at full pace to India’s updated NDC, we are not merely committing to a greener future but are actively leading the charge towards achieving it on both a national and global scale.”

Dr. R. Meenakshi Sundaram, Secretary – Planning and CEO, Centre for Public Policy and Good Governance (CPPGG), Government of Uttarakhand highlighted, “The integration of GSS principles within the financing mechanisms for ULBs and other government utilities & infrastructural programs is not just strategic but imperative for sustainable urban development.” He further elucidated, “At CPPGG, we aim to harness research, integrated planning, and strategic partnerships to bolster the Government of Uttarakhand’s efforts in policy reforms and sustainable development. This approach not only propels the state towards achieving the Sustainable Development Goals but also exemplifies our commitment to sustainable, technology-driven solutions for economic growth and community welfare.” Dr. Sundaram underlined, “I am sure this workshop jointly organised by the IFC, Climate Bonds Initiative and NSE shall go a long way in embracing coordination, convergence, and community participation, along with strengthening our partnerships and networks.”

Smt. Shalini Agrawal, IAS, Municipal Commissioner, Surat Municipal Corporation while discussing the transformative power of GSS instruments, stated, “In our quest against climate change, GSS instruments emerge not just as tools but as beacons guiding the urban transformation towards sustainability.” She added, “This training event serves as a critical platform, enlightening and preparing stakeholders for a journey in sustainable financing, underscoring the essence of collective action and informed decision-making.” Reflecting on her achievements and future plans, Ms. Agrawal shared, “With the introduction of Green Bond for Surat, we aim to not only champion sustainable urban development but also set a precedent for municipalities across India, demonstrating the effective use of financial markets for the betterment of society and the environment.”

Ms. Wendy Jo Werner, India Country Head, IFC said, “As a global issuer of GSS bonds, and a long-term investor in India, IFC is committed to catalyzing the sustainable finance market in the country. We look forward to engaging with issuers and the larger ecosystem to expand the reach and impact of GSS bonds and other innovative financial instruments to channel greater investment towards initiatives that yield real, positive outcomes amid escalating climate challenges. We would like to acknowledge NSE for their partnership in promoting thematic bonds and supplementing our ongoing efforts to advance the sustainable finance sector.”

Zalina Shamsudin, Head of Technical Assistance and Capacity Building, Climate Bonds Initiative, stated “Amidst the urgent call for sustainable finance, the collaboration between NSE, IFC, and Climate Bonds Initiative signals a pivotal stride towards empowering market stakeholders with the necessary knowledge and tools to navigate the realm of Green, Social, and Sustainability bonds. These workshops serve not only as educational platforms but as catalysts for collective action, fostering partnerships essential for steering our financial ecosystem towards a greener and more resilient future.”

Shri Ashishkumar Chauhan, MD & CEO, NSE, stated, “At this pivotal moment, as we stand on the brink of a sustainability-focused financial revolution, our workshop on GSS Bonds marks a critical step towards closing India’s climate financing gap. This initiative, in collaboration with esteemed partners like the IFC, CBI, HSBC, and the Kingdom of Netherlands, is more than a training program—it’s a clarion call to leaders and visionaries to harness the transformative power of GSS bonds. He further mentioned that together, we’re paving the way for a future where sustainability is interwoven with investment, aiming to create a robust ecosystem that aligns financial mechanisms with our shared environmental and social goals, propelling India towards its net-zero ambitions.”

As NSE continues to lead the charge in facilitating sustainable investment and financing solutions, this training program stands as a testament to our commitment to fostering an informed and empowered financial community, ready to tackle the challenges of climate change and drive impactful social and environmental outcomes.

The NSE looks forward to hosting more such initiatives in the future, reinforcing our dedication to integrating sustainability into the fabric of financial markets and contributing to a greener, more resilient economy.