Title: Modelling the factors for the launch of sovereign green bond in India using Fuzzy-AHP method

Authors: Pushkar Pushp; Sudeep Subramanian

Addresses: FORE School of Management, Adhitam Kendra, B-18, Qutub Institutional Area, New Delhi – 110 016, India ' FORE School of Management, Adhitam Kendra, B-18, Qutub Institutional Area, New Delhi – 110 016, India

Abstract: Green bonds have a huge role to play in tackling climate change. Governments and policymakers across the globe have agreed on attaining 17 sustainable development goals by 2030. India has one of the largest renewable energy programs to tackle climate change. In February 2022, the Government of India announced the launch of sovereign green bonds. With this objective, this study aims to identify the factors that should be considered by the policymakers while launching the proposed sovereign green bonds by the union government. The factors identified have been grouped into four broad sets namely infrastructural factors, political and economic factors, financial factors and social factors. The findings reveal that coupon (interest) rate offered, exchange rate stability, monitoring and management framework, sovereign guarantee, and carbon performance benchmarks among others are imperative for green bond operations in India. The inputs from this study can help design the policy for a successful launch of sovereign green bonds.

Keywords: sovereign green bonds; sustainability; green finance; Fuzzy-AHP; renewable energy; sustainable development goals; climate change.

DOI: 10.1504/IJICBM.2024.139000

International Journal of Indian Culture and Business Management, 2024 Vol.32 No.1, pp.80 - 97

Received: 13 Sep 2022
Accepted: 26 Dec 2022
Published online: 07 Jun 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article