Climate Finance Taxonomy: Defining Green Investment Standards

India’s Climate Finance Taxonomy is a landmark framework launched in 2025 to provide clarity, credibility, and accountability for green investments. The taxonomy aligns national and global capital flows with India’s climate goals—Net Zero by 2070 and NDCs for 2030—while aiming to prevent greenwashing by setting objective standards for what counts as a “green” or “climate-aligned” investment.

  • Green taxonomies are global best-practice tools, already used by the EU, China, and other major economies, to unlock sustainable finance and attract international capital.

Recent Developments

  • The Finance Ministry released the Draft Framework of India’s Climate Finance Taxonomy in May 2025, developed in partnership with ....
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