Environment › Climate negotiations and finance
Climate finance, carbon markets and carbon pricing
Climate money and the price of carbon: the funds and goals for climate finance, green bonds and what may be counted green, carbon markets, and border taxes on carbon. Prelims has asked about carbon markets under Article 6 of the Paris Agreement and about a bond that funds both environmental and social projects.
UPSC has asked
- Prelims 2025: Article 6 of the Paris Agreement and carbon markets
- Prelims 2023: carbon markets as a tool against climate change
Showing 1 of 3 subjects, those that changed from 1 to 15 September 2026.Show all
Green status for nuclear power
Copy link to Green status for nuclear powerPrelims and Mains
A green label is worth asking for because it lowers the cost of capital, and nothing needs that more than a plant that takes a decade to build and longer to pay back.
- Private nuclear developers asked the National Institution for Transforming India (NITI Aayog) for green energy status, so that nuclear projects could raise money through green instruments.
- The World Bank and the Asian Development Bank are reviewing their own limits on nuclear investment, and their rules on what they will not fund are copied by others.
- The Central Electricity Authority flagged rules still pending under the SHANTI Act, long gestation and scarce manpower.
- Widening the label raises money for more projects and weakens what the label tells an investor, and those two move against each other.
- Where an activity does not fit, the usual middle path is to call it low carbon or to fund it as transition finance, under conditions.
What changed
- CBAM
- Carbon Border Adjustment Mechanism: a charge on the carbon emitted in making an imported good, so that it carries the same carbon cost as one made inside the importing bloc.
- Carbon leakage
- The shifting of production, and of the emissions that go with it, to countries with weaker climate rules, in response to a carbon price at home.
- Sovereign green bond
- Government debt whose proceeds fund environmentally sustainable projects, so it is classified by who issues it and by what the money is spent on.
- Greenium
- The yield discount investors accept on a green bond against a comparable conventional bond.
- Basis point
- One hundredth of a percentage point, the unit in which bond yields are compared.