India's Net-Zero Goals Hampered by Lack of Green Finance Taxonomy

Business Standard · business

India's ambition to achieve net-zero emissions by 2070 is significantly hindered by the absence of a formal definition and taxonomy for green finance. This lack of a standardized framework makes it difficult to track financial flows to green sectors, impacting policy design and investment. Experts highlight the fragmented regulatory landscape as a key challenge, with a statutory national green taxonomy still pending. The Finance Minister has indicated efforts to develop such a taxonomy by FY27 to enhance climate finance availability and support green transition goals.