Centre invites expert comments to develop India's Climate Finance Taxonomy for Net Zero goal

New Delhi, May 7 (IANS) The Finance Ministry’s Department of Economic Affairs on Wednesday invited expert comments on the draft framework to develop India's Climate Finance Taxonomy to facilitate greater resource flow for climate-friendly technologies and activities to achieve the country’s vision of being net zero by 2070.

While presenting the Union Budget 2024-25, Finance Minister Nirmala Sitharaman had said: "We will develop a taxonomy for climate finance for enhancing the availability of capital for climate adaptation and mitigation. This will support achievement of the country’s climate commitments and green transition."

A draft framework of the Climate Finance Taxonomy has been developed pursuant to this announcement. This framework outlines the approach, objectives, and principles that will guide the taxonomy. It also details the methodology for classifying activities, projects, and measures that contribute to India's climate commitments, while also taking into account goals associated with achieving Viksit Bharat by 2047, according to an official statement.

The draft framework will be the basis for developing sectoral annexures, which will outline the measures, activities, and projects considered climate-supportive, and those identified for promoting the transition, the statement said.

India's climate finance taxonomy aims to facilitate greater resource flow to climate-friendly technologies and activities, enabling the country to achieve the vision of being Net Zero by 2070 while also ensuring long-term access to reliable and affordable energy. The Climate Finance Taxonomy will serve as a tool to identify activities consistent with a country's climate action goals and transition pathway.

Comments may be emailed to aditi.pathak[at]gov[dot]in by 25th June 2025 with the subject “Comments on the Draft Framework for the Taxonomy”.

The comments received through public consultation will be duly considered and examined, following which the Department of Economic Affairs will release the Framework of India’s Climate Finance Taxonomy, the statement added.

The Department of Economic Affairs has also released a format in which the information/comments may be provided.

--IANS

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