Green Municipal Bonds (GMB) ( UPSC Prelims)

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News Context

Recently, Ghaziabad Nagar Nigam became the first in India to issue a certified Green Municipal Bond (GMB) under the Swachh Bharat Mission Urban, successfully raising ₹150 crore for the construction of a Tertiary Sewage Treatment Plant (TSTP). The TSTP was established using a Public-Private Hybrid Annuity Model (PPP-HAM), with 40% of the funding provided by the municipality.

About GMB

• Municipal bonds are non-convertible debt instruments issued by a municipal authority or other entities created for this purpose, with responsibilities outlined under Article 243W of the Constitution.
 • Green bonds are utilized to generate capital specifically for projects focused on climate mitigation, adaptation, and other environmentally friendly and low-carbon initiatives, as defined by the World Bank.