SEBI has proposed the concept of blue bonds as a mode of sustainable finance, saying such securities can be utilised for various blue economy-related activities, including oceanic resource mining and sustainable fishing. It has also suggested strengthening the framework for green bonds by amplifying the definition of green debt securities and enhancing disclosures. The proposals are aimed at aligning with the updated Green Bond Principles (GBP) published by the International Capital Market Association (ICMA). It has also been suggested adding two categories -- pollution prevention and control and circular economy adapted products -- as eligible green projects. Further, the issuers should disclose information pertaining to reporting of the environmental impact of the projects financed by the green debt securities.

According to the World Bank, the blue economy is the "sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem. India has a 7,500 kilometre-long coastline and 14,500 kilometres of navigable inland waterways, and the development of the blue economy can serve as a growth catalyst. 

Comments on Consultation paper may be submitted by 30th September, 2022.

Click the icon to read the Consultation paper