India Draft Climate Finance Taxonomy Marks Milestone in Green Economy Push
India has taken a major step toward aligning its financial system with climate goals by unveiling its draft Climate Finance Taxonomy, a structured framework aimed at defining what constitutes climate-aligned investments in the country. The draft, released in June 2025 by the Union Ministry of Finance’s Department of Economic Affairs, was developed in consultation with the Reserve Bank of India, SEBI, and the Ministry of Environment, Forest and Climate Change.
It is seen as a timely intervention in the effort to steer billions of dollars in finance toward India’s green transition, especially as the nation moves toward becoming a $10 trillion economy while remaining committed to its 2070 net-zero target.
The taxonomy attempts to bring clarity and credibility to green finance a space ofte...









