Seven lessons for India’s climate finance taxonomy
Response to the Department of Economics Affairs’ Public Consultation on the Draft Framework for India’s Climate Finance Taxonomy
By Kritima Bhapta, Juan-Pablo Martinez, Alia Yusuf, Renu Kohli and Joseph Feyertag
In May 2025, the Department of Economic Affairs (DEA) within India’s Ministry of Finance released a first draft framework of India’s Climate Finance Taxonomy for public consultation. The taxonomy aims to facilitate around US$250 billion per year (Ministry of Finance, 2025) of finance towards climate-friendly technologies and activities and thereby enable India to achieve its interim 2030 and long-term 2070 net zero targets.
The draft framework already integrates many positive and encouraging priorities that will ensure that the development of the Climate Finance Taxonomy follows international best practice. Building on this positive momentum, this report from the Centre for Economic Transformation Expertise (CETEx) aims to inform and guide the DEA’s further development of the Climate Finance Taxonomy by highlighting international best practice. A version of the report was submitted to the DEA’s Public Consultation on the Draft Framework for India’s Climate Finance Taxonomy in July 2025.