BS EDIT: India’s Climate Finance Taxonomy: A Timely Move

By Business StandardPublished On May 12, 2025

Why It Matters

India needs $2.5 trillion to meet its 2030 climate goals

Public funds won’t suffice—private investment is key

What the Taxonomy Does

It defines “green” and “sustainable” investments

Clarity here will help unlock much-needed private climate finance

The framework supports:

Global goals

Local tech

MSMEs

International alignment

Priority Sectors

Covers sectors like: Energy, mobility, agriculture, water, buildings, cement, and steel

Targets both easy and hard-to-abate areas

Built to Evolve

It’s a living document—meant to grow with tech and needs

Even tough-to-decarbonise sectors are included

Preventing Greenwashing

Strict disclosure norms are needed

Only verified green claims should qualify for funding