<ul data-eligibleForWebStory="false"><li>The draft climate finance taxonomy in India aims to steer investments towards sustainable transitions but faces challenges in achieving this goal.</li><li>It focuses on key sectors like power, mobility, buildings, agriculture, and hard-to-abate industries, aiming for an inclusive approach that considers indigenous innovation and transitions for MSMEs.</li><li>However, the draft taxonomy has contradictions, such as including 'cleaner' coal technologies, potentially leading to greenwashing and risking carbon-intensive infrastructure lock-ins.</li><li>There are concerns about the lack of clear timelines, phase-out clauses, governance structure, financial plumbing details, and the narrow focus on sectoral adaptation in the draft, highlighting the need for refinement and execution to drive India's green transition.</li></ul>

Climate finance taxonomy draft needs more teeth

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