Climate change has been recognised as one of the most critical challenges faced by the global society and economy in the 21st century. The financial sector can play a pivotal role in mobilizing resources and their alloca
CS Professional · Banking - Law & Practice · PYQS · December 2024
Climate change has been recognised as one of the most critical challenges faced by the global society and economy in the 21st century. The financial sector can play a pivotal role in mobilizing resources and their allocation thereof in green activities/ projects. Green finance is also progressively gaining traction in India. In this regard, RBI has examined the aspects in detail and has released a broad framework in this regard. With this end in view, as all of us know, Deposits constitute a major source for mobilizing of funds by the Banks/Regulated Entities (REs). It is seen that some REs is already offering green deposits for financing green activities and projects. Taking this forward and with a view to fostering and developing green finance ecosystem in the country, Reserve Bank of India has put in place a Framework for acceptance of Green Deposits for the Regulated Entities. With this background, answer the following questions: Name the projects which have been excluded from the above classification of green activities/projects?
Answer & Explanation:
In terms of the RBI Circular, the projects which have been excluded from the green activities/ projects classification are: Projects involving new or existing extraction, production and distribution of fossil fuels, including improvements and upgrades; or where the core energy source is fossil-fuel based. Nuclear power generation. Direct waste incineration. Alcohol, weapons, tobacco, gaming, or palm oil industries. Renewable energy projects generating energy from biomass using feedstock originating from protected areas. Landfill projects. Hydropower plants larger than 25 MW.
Topics: Green Finance
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