Climate Finance Taxonomy
A Climate Finance Taxonomy is a systematic framework introduced by the Indian government to classify economic sectors that qualify as environmentally sustainable investments. Presented by Finance Minister Nirmala Sitharaman in the Union Budget on July 23, 2024, this taxonomy aims to enhance funding for climate adaptation and mitigation, aiding India in meeting its climate commitments and transitioning to a greener economy. The framework guides investors and banks, fostering genuine environmental benefits and mitigating risks associated with greenwashing. India targets significant investments in sectors like electric vehicles and renewable energy, aligning with global efforts to combat climate change and achieve net-zero emissions by 2070.
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