India has released the climate finance taxonomy draft.
The Ministry of Finance released the draft framework for its climate finance taxonomy, a classification system for identifying sustainable economic activities aligned with its climate goals.
The climate finance taxonomy classifies activities and projects by two categories: “climate-supportive” for activities contributing to specific objectives and “transition-supportive” for projects improving energy efficiency or reducing emissions intensity in sectors where absolute emissions avoidance is not yet viable.
The climate finance taxonomy draft aims to channel resources towards green technologies and prevent greenwashing. It covers technologies, measures, projects, and activities aligned to mitigation, adaptation, and low-carbon pathways.
The ministry has sought public feedback on the draft by June 25, 2025.
It must be noted that India’s proactive measures have yielded positive results, with many targets under its first nationally determined contribution (NDC) achieved ahead of schedule.
The country has successfully established an installed electricity generation capacity of 222.85 GW from non-fossil fuel sources, accounting for 47.4% of the total capacity as of February 2025.
“India’s climate finance taxonomy will facilitate greater resource flow to climate-friendly technologies and activities, enabling India to achieve the vision of being Net Zero by 2070, while ensuring long-term access to reliable and affordable energy,” the department of economic affairs said in the draft paper.
