India’s draft Climate Finance Taxonomy: aims and features
Why in the news
A draft framework defines climate-aligned sectors, technologies and practices, prepared by the Department of Economic Affairs.
Key facts
- A living document that evolves with India’s priorities and global goals.
- Covers mitigation, adaptation and transition.
- Annual reviews handle short-term updates; five-year reviews link to NDCs and the global stocktake.
- Consistent with the Energy Conservation Act, SEBI norms and the Carbon Credit Trading Scheme.
- Simpler compliance for MSMEs, informal sectors and vulnerable communities.
Exam angle
- Related term: greenwashing.
- Preparing body: Department of Economic Affairs.