Transition Bonds and SEBI

Abstract

Transition Finance is that which assists a company to move from a ‘carbon-intensive’ nature of operations to ‘carbon-neutral’ nature of operations. This transition eventually helps the industry and the nation in moving to net zero. Finance needed for this transition is known as ‘transition finance’. Recently, SEBI has brought in a new green bond framework of which transition finance is also an important part. This article discusses the nuances of the SEBI green bond framework pertaining to transition finance.