Taxonomy For Climate Finance, Ready In 6 Mths

New Delhi: Economic Affairs Secretary Ajay Seth has said work with respect to developing a taxonomy for climate finance is going on and it should be ready in the next six months or so.

“Work is happening, and in fact, the steel ministry has completed their work. They have issued their taxonomy for the steel sector,” he told media in an interview.

However, he said, a much more comprehensive exercise covering all sectors of the economy is going on and a concept paper has already been shared with stakeholders concerned and their views have been obtained. “Various committees have been formed, one for each sector, and we expect that over the next six months that exercise can be completed,” he added. Finance Minister Nirmala Sithraman in her Budget 2024-25 had announced a proposal for developing a taxonomy for climate finance.

“We will develop a taxonomy for climate finance for enhancing the availability of capital for climate adaptation and mitigation. This will support achievement of the country’s climate commitments and green transition,” she had said. Seth further said the government’s prudent fiscal management may soften government securities yields and leave more funds for corporates to invest in the economy. In absolute terms, he said, “We will be borrowing (for FY26) less than what we intend to borrow in the current year.