CDS 2026 (I) General Knowledge, question 40

Topic: Economy

Answers by SolvedPaper. UPSC has not released the official answer key for this paper yet. We will update it when they do.

Q40

The financial instruments that generate proceeds for investment in environmentally sustainable and climate-suitable projects are called as :

  1. (a) Green BondsCorrect answer
  2. (b) Carbon Bonds
  3. (c) Climate Credit Bonds
  4. (d) Social Impact Bonds

Solution.

Answer: (a) Green Bonds

  1. Green bonds raise funds earmarked for eligible environmental or climate-related projects.
  2. The deciding feature is the designated use of proceeds, such as renewable energy, clean transport or pollution control.