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1. International Finance Corporation Green Bond Framework and basis studies of social bond Research Project PPT Name: Venugopal N USN: 221VMBR03371 Elective: International Finance Date of submission : 10/06/2024

2. What is green Bond: International Finance Corporation Green Bond Framework Launched on 2007 and used to fund environment friendly projects at lower rate then regular bonds which help company to invest more in Green bonds offer Types of Green Bonds : Green bonds are issued in different structural formats. Those are 1. Green Revenue bonds 2.Green projects Bond 3.Green securitized Bonds Principles to follow while Issuing the green bonds given below 1. Use of Proceeds 2. Project Evaluation and selection 3.Management and Proceeds 4. Reporting

3. What is Social Bonds: IFC's social bonds offer investors an opportunity to finance IFC projects that benefit under-served populations in emerging markets, including women and low-income communities with limited access to essential services such as basic infrastructure, healthcare, finance and sanitation The Social Bond Program supports projects that aim to achieve positive social outcomes it mainly looks into help women and low income communtities to earn a income for their future Social project categories Example: A Affordable basic infrastructure (e.g., clean drinking water, sanitation, transport, energy) B Access to essential services (e.g., education and vocational training, healthcare,and financial services) C Affordable housing D Employment generation including through the potential effect of SM financing and MSME E Food security F Socioeconomic advancement and empowerment

4. Main objective to do research on IFC Green bond topic is .  Analysis the % of improvements in environment(reduction in gas emission , increases in renewable energy capacity )after implementing the green bonds year by year  Study of new Activities has been implemented and going to implement in future days in relating to social and green bond projects  To identify the country which is facing a lack of investment in the sectors and lack of knowledge and facing high cost of issuance to ensure to give a best suggestion to the country to grow up  To educate the people who not aware of the green bonds investments to help environements and educate people in social bond activities to reduce poverty IEnova's solar plants in Mexico

5. Role and Importance of Green Bonds  Climate change – Green bonds is having very essential impact in Climate Change including rising sea levels, extreme weather events and crop failures.  Renewable energy - green bonds can help finance this transition to cleaner energy sources .  Job creation - Investing in green projects can create jobs in areas such as renewable energy,Energy efficient.  Access to finance- helps in Indian companies, Municipal Corporations and Government agencies looking to finance environmentally beneficial projects.  Other : Attracting foreign investments and improving Global Rating Sanasa Water and Wastewater Management Brazil

6. Projects eligible for funding in FY23 in Social sector * Inclusion & Gender Finance Projects ( Gender finance projects address gaps in access to finance for women-owned enterprises ) * Global Health Platform Projects ( IFC’s Global Health Platform provide financing solutions to manufacturers, suppliers, and service providers ) * COVID-19 Response Projects ( Together, these projects support economic growth , job creation, and a resilient pandemic recovery in emerging markets .) Indicators Baseline Target Vaccines sold 118,00,000 Outstanding microfinance loans (#) 5,974,168 8,237,149 Farmers reached 85,636 218,770 Students enrolled 90,175 100,966 Customers reached 673,963 3,366,315 Outstanding loans to women 121,259 641, 635 Outstanding SME loans 20,729 30,151 Outstanding housing loans 24,369 96,495 Khan Bank Gender Finance

7. Green Bond Eligible Project Commitments by Region (US$ millions) As of June 30, 2023, IFC green bond proceeds supported 285 green bond eligible projects. The total committed amount for these projects is US$12.1 billion , of which US$10.2 billion has been disbursed. FY 14 15 16 17 18 19 20 21 22 23 total Commitments 936 1133 961 1554 2205 885 696 1040 1035 1694 12,139 Disbursements 242 957 754 1357 1913 1135 642 665 1326 1247 10,237 Social Bond Eligible Project Commitments by Region (US$ millions) As of June 30, 2023, IFC has committed 299 projects eligible for support from social bond proceeds. The total committed amount for these projects is US$10.3 billion of which US$9.1 billion has been disbursed FY 17 18 19 20 21 22 23 total Commitments 620 717 823 2156 1501 1827 2652 10,296 Disbursements 364 614 872 966 1856 1275 3194 9,141

8. Green bond climate sector Type Project ID Project short name Country or region Project desc. Climate loan commited AEP AES RECC Expected Annual Reduction in GHG Emission tCO2 eq/year Green Bond Principles Categories Sustainable Development Goals Solar Energy/ Wind Energy Renewable Energy 46362 FP Energy PF India IFC's loan will finance Fourth Partner Energy Private Limited's 170 MWp portfolio of distributed generation assets, comprising (i) 95 MWp of onsite solar (RTS) plants and (ii) 75 MWp offsite, ground mounted solar power plants under the Open Access (OA) model, . 51.45   220560   170 181,304 Renewable Energy 5,7,8,9,10,13,17 Green Bond Project happened at FY 23 In india

9. Social Bond Project happened at FY 23 In India Sector Project Id Instutioanl Name Country or region Project descrpiton Eligible Loan Commitment (US$ millions) Social Bond Principles Categories Sustainable Development Goals Microfinance 47937 Vivriti Fixed Income Fund – Series 3 IFSC LLP India The fund, managed by Vivriti Asset Management Private Limited (VAM) which serves financial institutions, corporations, small enterprises, and individuals who lack access to financial services, 10 Access to essential Services 1,5,8,10,17 Housing Finance 46494 Tata Capital Housing Finance Limited (TCHFL) India TCHFL is a wholly owned subsidiary of Tata Capital Limited (TCL), a housing finance company (HFC) with a focus on mortgage and residential housing construction finance. The project will support TCHFL in expanding its housing finance portfolio, including sub-segments like affordable housing finance. 136.11 Affordable housing 1,5,8,10,11,13

10. IFC Green and social Bond Program Process Use of Proceeds Project evaluation and selection Management proceeds Reporting Comparative Analysis: Global Growth of Green Bonds Vs. Growth in India Sl.no Global Growth Growth in India 1 The global green bond market has grown rapidly in recent years. According to the Climate Bonds Initiative, the global green bond market grew from $37 billion in 2013 to $167 billion in 2018. This represents a CAGR of over 40% The green bond market in India has also grown rapidly in recent years. According to the Climate Bonds Initiative, the Indian green bond market grew from $1.2 billion in 2013 to $7.2 billion in 2018. This represents a CAGR of over 50%. 2 Emerging market green bond issuance is expected to grow to more than USD 100 billion by 2023, according to a report from Amundi and the International Finance Corporation (IFC) ( Amundi & IFC, 2021). India has made its debut in Sovereign Green Bonds in the year 2023 with the maiden Sovereign Green Bond ( SGrB ) auction of Rs . 8,000 crore held on 25.01.2023 got oversubscribed owing to robust demand from various market participants, primarily banks.

11. Reports used for Reference By International Finance Corporation: https :// www.ifc.org/en/about/investor-relations/green-bonds By HSBC https://www.hsbc.com/-/ files/hsbc/investors/fixed-income-investors/green-and-sustainability-bonds/pdfs/221216-hsbc-green-bonds-report-2022.pdf?download=1 By Yes Bank and Masala https :// www.impactinvest.org.uk/wp-content/uploads/2021/04/Masala-Green-Bond.pdf By ICMA https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/green-bond-principles-gbp /

12. Conclusion : Green bonds have become an important part of India’s financial and fiscal landscape The Government should continue to promote the use of green bonds and create a conducive environment for their growth. This will help India move towards a greener and more sustainable future. India can also leverage the second mover advantage by learning from the mistakes of the West and proactively tackle issues like greenwashing , low geranium and green bond audits . This report is not intended to be the last word of trasnit green bonds. this is a young and dynamic market as it evolves and matters, further reaserch would build confidence in transit agencies, and potentially increase the number of trasnsit green bonds issued. Thank you Venugopal N Artic ocean protection scheme