Centre unveils climate taxonomy for clean energy investment

Key Points

• 1The Finance Ministry released a draft document, “Framework of India’s climate finance taxonomy”.
• 2The objective of this taxonomy is to encourage investment in climate-friendly technologies and activities.
• 3The taxonomy should prevent “green-washing” and be consistent with the developmental goal of 'Viksit Bharat'.
• 4Developing countries demand billions of dollars from developed countries in the form of subsidised technology transfer and grants to finance renewable energy development.
• 5The climate taxonomy document aims to classify activities and sectors as “climate supportive” or “climate transition”.