wl-4193-A Green Taxonomy Can Boost Financing for Meeting India’s Sustainability Goals

The 2030 Agenda for Sustainable Development aims to integrate sustainable development's economic, social, and environmental aspects. Green financing, including green, social, sustainability, and sustainability-linked bonds, is crucial for achieving these goals. In the 2024-25 budget, India introduced a climate finance taxonomy, following the release of a Sovereign Green Bond Framework in 2022. However, the absence of a comprehensive green taxonomy, hinders investors' participation in sustainability projects. This article provides an overview, draws insights from the taxonomies of Europe and India’s neighbouring countries, and highlights the need for a taxonomy in India.