Explanation:

• The Sovereign Green Bonds (SGrBs) are bonds issued by any sovereign entity, inter-governmental groups or alliances and corporates with the aim that proceeds of bonds are utilised for environmentally sustainable projects. It will help in reducing the carbon intensity of the economy.
• SGrBs were announced in Union Budget 2022-23 and framework for SGrBs was issued (by Ministry of Finance) in November 2022.
• RBI will issue 5-year and 10-year green bonds of Rs 4,000 crore each in current financial year. Hence, statement 1 is correct.
• The only difference between Green Bonds and other ordinary government-issued bonds is that  the funds raised from investors are only used to support initiatives that have a good influence on the environment, such as green construction and renewable energy. Primarily these aim to contribute to the planet and its sustainability.
• The government has tried to make them attractive for institutional investors by giving sops like issuing them through a uniform price auction, making them eligible for Repo as also SLR purposes, and making them eligible for trading in the secondary market. Hence, statement 2 is correct.
• Even NRIs are allowed to invest in them. The risk is further reduced in these bonds as per the framework announced earlier where the payments of principal and interest on these bonds are not conditional on the performance of the eligible projects and the investors in these bonds do not bear any
project-related risks. Hence, statement 3 is not correct.
• Eligible projects under SGrBs framework include projects of renewable energy, energy efficiency, clean transportation, climate change adaptation, sustainable water and waste management, pollution prevention and control, green buildings, and biodiversity conservation. Q 71.