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Question

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

This question was previously asked in
CDS 2 2026 Maths Question Paper (13-Sep-2026)
The correct answer is
Green Bonds

The question is about identifying a type of financial instrument that generates proceeds for investment in projects that are environmentally sustainable and suitable for climate initiatives. Let us examine the options one by one to find the correct answer.

  1. Green Bonds: These are fixed-income financial instruments specifically designated to raise money for climate and environmental projects. The proceeds from these bonds are exclusively used for projects that contribute to energy efficiency, pollution prevention, sustainable agriculture, fishery and forestry, the protection of aquatic and terrestrial ecosystems, clean transportation, clean water and sustainable water management, and the cultivation of environmentally friendly technologies. Thus, green bonds fit the given definition perfectly.
  2. Carbon Bonds: These financial instruments are not standardly recognized in the investment world as specific tools for raising funds for environmental projects. Rather, the term is a misnomer when applied to the concept in question.
  3. Climate Credit Bonds: Although they sound relevant to climate-related investments, they are not widely recognized as financial instruments dedicated to funding environmentally sustainable projects. Therefore, they do not match the definition provided.
  4. Social Impact Bonds: These are financial instruments that raise funds for projects with social outcomes, such as improving education and healthcare, reducing recidivism, and other public services. They are not typically used exclusively for environmental or climate-related projects, hence do not fit the definition.

After evaluating all the given options, it is clear that the correct answer is Green Bonds. This option explicitly aligns with the concept of generating proceeds for investment in environmentally sustainable and climate-appropriate projects.

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Important Questions from Indian Financial System

  1. In India, deficit financing is used for raising resources for

  2. Consider the following statements : 
    1. As per the Right to Education (RTE) Act, to be eligible for appointment as a teacher in a State, a person would be required to possess the minimum qualification laid down by the concerned State Council of Teacher Education. 
    2. As per the RTE Act, for teaching primary classes, a candidate is required to pass a Teacher Eligibility Test conducted in accordance with the National Council of Teacher Education guidelines. 
    3. In India, more than 90% of teacher -5 education institutions are directly under the State Governments. 
    Which of the statements given above is/are correct ?

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