On 24-11-2022, SEBI has issued a circular on Issue of Green Debt Securities by an issuer under SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015. An issuer under the ILMDS Regulations may issue a green debt security if it falls within the definition of “green debt security”, as per Regulation 2(1)(q) of the NCS Regulations.
Such issuer, shall, in addition to the requirements prescribed under the ILMDS Regulations and circulars issued thereunder, comply with the provisions for ‘green debt security’, as specified under the NCS Regulations and circulars issued thereunder.
Regulation 2(1)(q) of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (NCS Regulations), defines “green debt security” as a debt security issued for raising funds that are to be utilised for project(s) and/or asset(s) falling under any of the following categories, subject to the conditions as may be specified by the Board from time to time:
(i) Renewable and sustainable energy including wind, solar, bioenergy, other sources of energy which use clean technology,
(ii) Clean transportation including mass/public transportation,
(iii) Sustainable water management including clean and/or drinking water, water recycling,
(iv) Climate change adaptation,
(v) Energy efficiency including efficient and green buildings,
(vi) Sustainable waste management including recycling, waste to energy, efficient disposal of wastage,
(vii) Sustainable land use including sustainable forestry and agriculture, afforestation,
(viii) Biodiversity conservation, or
(ix) a category as may be specified by the Board, from time to time.