The Legal Architecture Of Green Finance: Comparative Study Of India’s Sovereign Green Bonds And The UK Green Finance Strategy
- IJLLR Journal
- Oct 18
- 2 min read
Devan Singh, B.B.A. L.L.B. (Hons.) Candidates, Delhi Metropolitan Education (DME), Noida, Affiliated with Guru Gobind Singh Indraprastha University (GGSIPU), Delhi.
ABSTRACT
The acceleration of climate change necessitates the development of new funding instruments to support the shift to a low-carbon and climate-resilient economy.
Green finance, which includes investments that are environmentally sustainable, has become a very important tool towards meeting the global climate objectives. Sovereign green bonds and national green finance policy have become more popular in this framework, where capital markets are connected to environmental policy. The current paper is a comparative legal study of the sovereign green bonds structure in India and the Green Finance Strategy in the United Kingdom, to look at the regulatory, institutional, and policy frameworks that govern the green finance in both the United Kingdom and India.
After providing an overview of the concept's historical evolution, the article delves further into the legal framework for sovereign green bonds in India, including the Reserve Bank of India's issuing guidelines, regulations, and compliance periods. The UK Green Finance Strategy is then examined, along with its transparency requirements, regulatory interventions, and market- driven innovations aimed at encouraging both public and private finance to engage in sustainable ventures.
In terms of legal frameworks, policy integration, investor protections, and conformity to global norms like the Paris Agreement, the study uses a comparative approach to identify important parallels and divergences between India and the UK. The analysis also reveals a regulatory loophole, enforcement dilemma, and harmonization of global environment standards to empower the legal framework of green finance. The paper ends with suggestions as to how transparency, accountability, and cross-border collaboration can be improved to create a sustainable and healthy green finance ecosystem.
Keywords: Green Finance, Sovereign Green Bonds, UK Green Finance Strategy, Climate Change Law, Comparative Study
