New Delhi – In a key step toward aligning capital flows with climate objectives, the Ministry of Finance’s Department of Economic Affairs has released a draft Climate Finance Taxonomy and invited expert comments to refine it. This initiative aims to accelerate investments in climate-resilient and low-carbon technologies as part of India’s strategy to achieve net zero emissions by 2070.
The draft framework—developed in line with the Union Budget 2024-25 announcement by Finance Minister Nirmala Sitharaman—defines a methodology to classify projects and activities that support climate adaptation, mitigation, and the broader development vision of Viksit Bharat by 2047. It lays the foundation for identifying climate-aligned economic activities and promoting transparency in the use of funds for green transitions.
The taxonomy will serve as a critical tool for:
- Guiding public and private investments into green sectors
- Enabling access to global climate finance
- Aligning domestic financial flows with India’s climate commitments under the Paris Agreement
Sectoral annexures will be developed following stakeholder input, detailing which measures and activities are considered climate-supportive or transition-enabling.
Experts and stakeholders are invited to submit comments by June 25, 2025, via email to aditi.pathak[at]gov.in with the subject line: “Comments on the Draft Framework for the Taxonomy.”
A suggested format for submissions is available in the official release from the Department.
Once finalized, India’s Climate Finance Taxonomy is expected to enhance policy clarity, improve investor confidence, and position India as a global leader in sustainable finance. (Source: IANS)
