India's climate finance taxonomy will facilitate greater resource flow to climate-friendly technologies and activities, enabling India to achieve the vision of being Net Zero by 2070 while ensuring long-term access to reliable and affordable energy

In pursuance of the Union Budget 2024-25 announcement (Paragraph 104 of the budget speech) to develop India’s Climate Finance Taxonomy, the Department of Economic Affairs, Ministry of Finance, invites expert/public comments (format below) on the Draft framework. (CLICK HERE TO ACCESS — DRAFT FRAMEWORK OF INDIA’S CLIMATE FINANCE TAXONOMY)

The Union Minister for Finance and Corporate Affairs announced in the Union Budget 2025-26:

“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”

A Draft Framework of the Climate Finance Taxonomy has been developed pursuant to this announcement. This framework outlines the approach, objectives, and principles that will guide the taxonomy. 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.

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.

India's climate finance taxonomy aims to facilitate greater resource flow to climate-friendly technologies and activities, enabling the country to achieve the vision of being Net Zero by 2070 while also ensuring long-term access to reliable and affordable energy. The Climate Finance Taxonomy will serve as a tool to identify activities consistent with a country's climate action goals and transition pathway.

Comments may be emailed to aditi.pathak[at]gov[dot]in by 25th June 2025 with the Subject “Comments on the Draft Framework for the Taxonomy”.

The comments received through public consultation will be duly considered and examined, following which the Department of Economic Affairs, Ministry of Finance, will release the Framework of India’s Climate Finance Taxonomy.

Format in which the information/comments may be provided:

Name of organisation/person:
Contact details:
Category/Description of person giving comments:
S. No.	Para / Sub Para no	Comments	Rationale

 

Climate finance taxonomy invites public comments to shape classification of climate-supportive and transition activities and sectoral annexes. Draft framework for India's Climate Finance Taxonomy invites stakeholder submissions to establish a national classification system identifying activities, projects and measures as climate-supportive or transition-enabling, sets out objectives, principles and methodology for classification, and will underpin sectoral annexes detailing measures and projects considered climate-supportive or targeted for transition; comments are requested in a prescribed format via the designated email and will be considered in finalising the Framework.