Draft climate finance taxonomy framework aims to enhance green funding

Draft framework suggests hybrid approach to attract investors

To support investors in aligning with India’s climate action goals and facilitate greater resource flow for sustainable technologies and activities, the finance ministry on Wednesday released a much-awaited draft climate finance taxonomy framework.

 

The framework aims to enhance funding for climate-friendly technologies and develop research frameworks across sectors like power, mobility, agriculture, and water management, as well as for hard-to-abate sectors such as steel, cement, and iron. It also seeks to prevent greenwashing and improve tracking of financing.

 

The draft framework focuses on three objectives: mitigation, adaptation, and the transition of hard-to-abate sectors. It suggests a hybrid approach that includes