Why is India planning to raise funds through sovereign green bonds?

Indian government will issue $3.3 billion of sovereign green bonds in the first half of FY23. This adds sovereign debt to the Indian economy for the first time but benefits in terms of carbon footprint will offset that cost. It fits with India’s goal of net-zero emissions by 2070. Green bonds will raise funds at yields lower than the benchmark 6.85% bond yield. India is already the world’s third-biggest emitter of greenhouse gases and needs offsetting solutions.