UPSC Previous Year Question | Prelims GS | 2026

A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called:

  1. Green Bond
  2. Social Bond
  3. Sustainability Bond
  4. Sovereign Bond

Answer

Correct Answer

Sustainability Bond

Explanation

A Sustainability Bond is specifically used to finance or refinance a combination of eligible environmental and social projects. Green Bonds focus on environmental projects, while Social Bonds focus on projects with social objectives. Therefore, the correct answer is Sustainability Bond.

Topics: bonds, economy, green finance, sustainable finance