Overview

• The Finance Ministry released a draft framework for India's Climate Finance Taxonomy to align investments with Net Zero by 2070 and Viksit Bharat by 2047 goals.
• The taxonomy adopts a phased hybrid approach, starting with qualitative criteria and integrating quantitative benchmarks over time.
• Key sectors covered include power, mobility, buildings, agriculture, and hard-to-abate industries like iron, steel, and cement.
• A staggered approach with simplified criteria is proposed to support MSMEs in adopting climate-aligned practices without excessive burdens.
• Public and expert feedback is invited until June 25, 2025, with sectoral annexures to follow based on the finalized framework.