New Delhi: The Finance Ministry has invited suggestions and comments on a draft framework on climate finance taxonomy on Wednesday. India's climate finance taxonomy will facilitate greater resource flow to climate-friendly technologies and activities, enabling the country to achieve the vision of becoming net zero by 2070 while ensuring long-term access to reliable and affordable energy, the finance ministry said in a statement.
This framework outlines the approach, objectives, and principles that will guide the taxonomy, it said.
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, it added. Finance Minister Nirmala Sithraman in her Budget 2024-25 had announced a proposal for developing a taxonomy for climate finance.
"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," she had said.
"The draft framework will be the basis for developing sectoral annexures. The sectoral annexes will outline the measures, activities, and projects considered climate-supportive, and those identified for promoting the transition," it said.
The climate finance taxonomy will serve as a tool to identify activities consistent with a country's climate action goals and transition pathway, it added. The Department of Economic Affairs under Ministry of Finance has fixed June 25, 2025 as the last date for sending comments and suggestions.