Daijiworld Media Network – New Delhi
New Delhi, May 7: The Department of Economic Affairs, under the finance ministry, has called for expert feedback on the draft framework aimed at developing India’s Climate Finance Taxonomy. The initiative seeks to boost the flow of resources towards climate-friendly technologies and activities, which are critical for the country to meet its Net Zero emissions target by 2070.
The announcement comes in response to finance minister Nirmala Sitharaman’s proposal during the union budget 2024-25. She emphasized the need for a taxonomy to improve access to capital for climate adaptation and mitigation efforts, thereby supporting India’s green transition and climate commitments.
The draft framework outlines the approach, objectives, and guiding principles for the taxonomy, detailing how activities, projects, and measures that contribute to India’s climate goals will be classified. The framework also aligns with the nation’s ambition of achieving a Viksit Bharat by 2047, according to an official statement.
As part of the process, sectoral annexures will be developed to define specific climate-supportive activities and projects, as well as those necessary for the transition towards sustainable development. This initiative will serve as a key tool for identifying activities that are in line with India’s climate action objectives and transition pathway.
The finance ministry has invited comments on the draft framework from experts, with submissions to be sent by June 25, via email to aditi.pathak@gov.in. Public consultation feedback will be considered before the final release of the framework.
This move is part of India’s ongoing efforts to enhance climate finance mechanisms and create a sustainable, low-carbon economy for the future.