July
Instruments & Regulations

Budget 2024: What is taxonomy for climate finance? | Explained

[Source - The Hindu , 25 July 2024]
Author
Arjun Dutt

Notable because

By clearly defining eligible activities, a taxonomy for climate finance can allay concerns around greenwashing and help identify a pipeline of credible investment opportunities. This can accelerate the flow of climate finance by enabling the linking of investment opportunities with both domestic and international capital.

What to look out for in the months ahead

The International Financial Services Centres Authority (IFSCA) is already working on developing a transition finance framework to channel international climate capital flows to India through GIFT City. How would the proposed taxonomy interact with this framework?

Will the proposed taxonomy be harmonised with international frameworks or just be fit-for-purpose for India?