Climate finance taxonomy

    ESG & Governance

    An official classification of which economic activities count as climate-friendly or transition activities, often with numeric thresholds.

    A taxonomy gives banks, bond issuers and investors one rulebook for green labels and helps fight greenwashing. India's Ministry of Finance released a draft framework in May 2025, with climate supportive (two tiers) and transition supportive categories and first sectors including power, mobility, buildings, agriculture, steel and cement. As of this review, it was still a draft, and RBI and the sovereign green bond framework used interim lists of nine eligible categories.

    Related terms