Sebi extends deadline for public comments on consultation paper on blue bonds

Capital markets regulator Sebi has extended till the end of September the deadline for public comments on the consultation paper on blue bonds as a sustainable mode of finance.

Blue bonds can be utilised for various blue economy-related activities, including oceanic resource mining and sustainable fishing.

The deadline for submission of public comments on consultation paper, which was floated on August 4, is to end on August 31.

In a notice, the regulator said the deadline has been extended till September 30.

Apart from the concept of blue bonds, the watchdog, in its consultation paper, has suggested strengthening the framework for green bonds by amplifying the definition of green debt securities and enhancing disclosures.

The proposals are aimed at aligning with the updated Green Bond Principles (GBP) published by the International Capital Market Association (ICMA).

Since the framework of green debt securities was laid down by Sebi, there have been multiple events in the sustainable finance space around the world, thereby necessitating a review in the Indian context.

"India 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 eco-tourism model that provide the tourists clean and hygienic bathing water facilities," Sebi had said.

According 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 the ocean ecosystem".

India has a 7,500 kilometre-long coastline and 14,500 kilometres of navigable inland waterways, and the development of the blue economy can serve as a growth catalyst.

At present, the blue economy comprises 4.1 per cent of India's economy.