Q1. With reference to blue bonds and the Blue Economy, consider the following statements:
- A blue bond differs from a conventional bond primarily in the use-of-proceeds requirement, rather than in the basic mechanism of repayment of principal and interest.
- Every project undertaken under the Sagarmala Programme automatically qualifies for financing through a blue bond.
- Bluewashing refers to making misleading claims about the positive environmental or sustainability impact of activities associated with oceans or water resources.
- The absence of universally accepted standards for classifying eligible blue projects can create difficulties in assessing the environmental impact of blue bonds.
Which of the statements given above are correct?
(a) 1, 3 and 4 only
(b) 1 and 2 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4
Answer: (a)
Explanation:
- Statement 1 — Correct: A blue bond is still a debt instrument: investors generally receive interest and repayment of principal. Its distinctive feature is that the proceeds are earmarked for eligible ocean-, marine- or water-related projects.
- Statement 2 — Incorrect: Not every Sagarmala project qualifies. Projects financed through a blue bond must demonstrate measurable ocean/water sustainability outcomes.
- Statement 3 — Correct: Bluewashing involves overstating or misleadingly representing the environmental benefits of activities related to oceans or water.
- Statement 4 — Correct: The relatively limited development of blue bonds is partly associated with difficulties in establishing common standards and measuring marine environmental outcomes.
