Ghaziabad Sets Benchmark with India’s First Certified Green Municipal Bond

In a groundbreaking glide towards sustainable urban improvement, Ghaziabad has end up the primary town in India to issue a licensed Green Municipal Bond. This initiative, undertaken by way of using the Ghaziabad Nagar Nigam (GNN), has raised one hundred fifty crore to fund a cutting-edge Tertiary Sewage Treatment Plant (TSTP), marking a huge milestone in the us of a's adventure closer to environmental sustainability and modern urban infrastructure financing.

Understanding Green Municipal Bonds

Green Municipal Bonds are debt units issued with the aid of town close by our bodies to finance tasks which have first-rate environmental influences. These bonds are designed to attract shoppers who are interested in helping sustainable improvement projects. The price range raised are commonly allotted to obligations associated with renewable power, smooth transportation, sustainable water management, and unique inexperienced infrastructure trends.

In India, the issuance of municipal bonds is regulated with the aid of way of the Securities and Exchange Board of India (SEBI) beneath the SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015. To problem a Green Municipal Bond, the city nearby body have to benefit a 3rd-birthday party certification to make certain that the fee variety may be used for environmentally sustainable tasks.

The Ghaziabad Initiative: A Pioneering Effort

Ghaziabad's issuance of the certified Green Municipal Bond is a pioneering strive inside the Indian context. The one hundred fifty crore raised via this bond is being carried out to increase a Tertiary Sewage Treatment Plant with a ability of forty million liters in line with day (MLD). This plant employs superior Membrane Filtration Technologies, such as microfiltration, ultrafiltration, nanofiltration, and reverse osmosis (RO), to make sure that the treated water meets high requirements appropriate for enterprise reuse.

The handled water from the TSTP is sent thru a 95 km pipeline network to over 1,four hundred commercial devices in Ghaziabad. This initiative no longer first-rate addresses the problem of wastewater control but moreover promotes the reuse of water in industrial techniques, thereby protecting freshwater belongings.

Financial Model: Public-Private Hybrid Annuity Model (PPP-HAM)

The improvement of the TSTP follows the Public-Private Hybrid Annuity Model (PPP-HAM), a economic form that mixes public and personal region participation. Under this version, forty% of the investment is supplied through way of the municipal organization, whilst the closing 60% is contributed by way of personal buyers. This technique enables hazard-sharing and guarantees efficient undertaking implementation.

The fulfillment of this economic version in Ghaziabad demonstrates the capability for comparable collaborations in other town infrastructure tasks during the u . S . A ..

Recognition and Impact

Ghaziabad's innovative approach to sustainable water manage has garnered country wide and international popularity. The town became offered the Best Municipal Treated Water Reuse Award on the Water Digest World Water Awards 2024-25. Additionally, a delegation from West Suffolk College, England, visited Ghaziabad to take a look at the metropolis's sustainable development projects, highlighting the global interest in Ghaziabad's model.

The a success implementation of the TSTP and the issuance of the Green Municipal Bond have set a precedent for one-of-a-kind cities in India to conform with. By integrating superior generation, contemporary financing, and a determination to environmental sustainability, Ghaziabad is essential the way in developing cleaner, smarter, and extra resilient town regions.

Conclusion

Ghaziabad's issuance of India's first licensed Green Municipal Bond represents a great step inside the route of sustainable metropolis development. The a success investment and implementation of the Tertiary Sewage Treatment Plant show off the city's willpower to environmental sustainability and progressive infrastructure financing. This initiative serves as a model for different city close by bodies aiming to broaden green infrastructure initiatives through present day economic contraptions.

As urban areas preserve growing, the want for sustainable infrastructure becomes increasingly crucial. Ghaziabad's pioneering efforts showcase that with the proper combination of technology, financing, and policy aid, cities can efficaciously deal with environmental annoying situations and pave the manner for a sustainable future.

FAQs

1. What is a Green Municipal Bond?

A Green Municipal Bond is a economic device issued by way of a town or municipal body to fund projects that gain the surroundings, like sewage treatment, renewable electricity, or pollutants control.

2. Why become Ghaziabad’s bond licensed?

The bond have become licensed through the Climate Bonds Initiative, an global frame that verifies whether the budget are being used for environmentally beneficial initiatives.

3. How lots cash did Ghaziabad beautify thru the bond?

a hundred fifty crore have become raised via India’s first licensed Green Municipal Bond in 2024.

4. What is the reason of the sewage remedy plant?

To deal with wastewater to a tertiary degree and supply it to commercial enterprise devices, decreasing the need for smooth groundwater and improving environmental hygiene.

5. What era are used within the remedy process?

The TSTP makes use of superior membrane filtration techniques, consisting of microfiltration, ultrafiltration, nanofiltration, and opposite osmosis (RO).

6. Who operates the remedy plant?

The undertaking is primarily based on a Public-Private Partnership (PPP) model, in which a non-public entity will assemble and feature the plant for 15 years.

7. Will this bond help other cities in India?

Yes, it serves as a version for other municipalities looking to fund sustainable infrastructure thru inexperienced finance.

8. Is the bond safe for investors?

Yes, it obtained an AA score and is sponsored by way of the use of obvious governance, everyday audits, and immoderate demand within the market.

9. What is the environmental benefit of the undertaking?

It appreciably reduces untreated sewage discharge, conserves clean water, and promotes round use of resources.

10. Can different tasks—like renewable power—be financed this way?

Absolutely. Green Municipal Bonds can fund severa green initiatives including solar strength, electric powered powered mobility, and inexperienced constructing improvements.