new delhi markets regulator sebi has proposed the concept of blue bonds as a mode of sustainable finance saying such securities can be utilised for various blue economyrelated activities including oceanic resource mining and sustainable fishingalso the watchdog has suggested strengthening the framework for green bonds by amplifying the definition of green debt securities and enhancing disclosures according to a consultation paperthe proposals are aimed at aligning with the updated green bond principles gbp published by the international capital market association icmasince the framework of green debt securities was laid down by the securities and exchange board of india sebi there have been multiple events in the sustainable finance space around the world thereby necessitating a review in the indian context as per the consultation paper issued on thursdayindia has tremendous scope for deployment of blue bonds in various aspects of the blue economy like oceanic resource mining sustainable fishing national offshore wind energy policy and in the area of blue flag beach ecotourism model that provide the tourists clean and hygienic bathing water facilities it saidaccording to the world bank the blue economy is the sustainable use of ocean resources for economic growth improved livelihoods and jobs while preserving the health of ocean ecosystemindia has a 7500 kilometrelong coastline and 14500 kilometres of navigable inland waterways and the development of the blue economy can serve as a growth catalystat present the blue economy comprises 41 per cent of indias economy sebi saidfurther the regulator has suggested adding two categories pollution prevention and control and circular economy adapted products as eligible green projectssebi framework defines green debt securities gds as debt securities issued for raising funds that are to be utilised for projects or assets falling under certain categoriesthe regulator has suggested that the issuer should inform investors about the intended types of temporary placement for the balance of unallocated net proceeds also the utilisation of proceeds from each issue of gds made by an issuer should be tracked and disclosed separatelyin addition the issuer should disclose any taxonomies green standards or certifications if referenced in the project selectionas per sebi the issuers should disclose information pertaining to reporting of the environmental impact of the projects financed by the green debt securities this will enable investors to gather information pertaining to the impact of the project on the environment it addedin order to enhance disclosure requirements for refinancing of projects through gds sebi said that in the event that all or a proportion of the proceeds are to be used for refinancing then the issuers should provide an estimate of the share of financing and refinancingbesides they should clarify which project portfolios may be refinanced and the expected lookback period for refinanced eligible green projectsindian companies raised nearly 7 billion through esg environmental social and governance and green bonds in 2021 compared to 14 billion in 2020 and 4 billion in 2019most of the green bonds issued by indian issuers are listed on offshore exchanges as issuers are