UPSC CSE Prelims
Question 67
A bond whose proceeds are used only to finance or refinance a combination of both environmental and social projects is called :
View correct answer and explanation
Correct answer: C
Correct Option: C
Explanation: Sustainability bonds allocate proceeds to a defined mix of eligible environmental and social initiatives.
Option-wise Analysis:
A: Incorrect - Green bonds finance eligible environmental projects only.
B: Incorrect - Social bonds focus on eligible social purposes only.
C: Correct - Sustainability bonds combine eligible green and social financing.
D: Incorrect - “Sovereign” describes the government issuer, not a mandatory combined green/social use of proceeds.