The Government of India’s Ministry of Finance released the draft framework for India’s Climate Finance Taxonomy on 7 May 2025. The draft framework discusses the country’s climate goals and commitments, including Nationally Determined Contributions and the Net Zero target by 2070, and highlights the significant financial investment required to achieve these.
The document explains the objectives and principles guiding the development of the taxonomy, aiming to channel resources towards climate-friendly activities while preventing “greenwashing.” It details a proposed two-phase approach to classifying activities as climate-supportive or transition-supportive and identifies initial key sectors like Power, Mobility, Buildings, Agriculture, Food & Water Security, and Hard-to-abate industries for inclusion.
The Ministry is inviting comments by June 25, 2025 and the format for that can be accessed here. This initial critique is to capture the key elements of the Framework and to share analysis, hoping that this will help in formulating our responses to the Framework.
Read and Download the Briefing Paper here: Critique on the Draft Framework for India’s Climate Finance Taxonomy
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