India, Aug. 12 -- A robust climate finance taxonomy framework could unlock large-scale funding and attract European capital to affirm our position as a global clean-tech powerhouse. Finance minister Nirmala Sitharaman announced the development of a Climate Finance Taxonomy when she presented the Union Budget for FY 2024. In May this year, the ministry of finance released the Climate Finance Taxonomy Framework for public consultation and input. This classification system, currently under review, defines what qualifies as "green" or climate-aligned activity to support investors, banks, and governments in making investments in clean-tech.

The Budget FY 2025 recognises clean-tech manufacturing as central to India's global competitiveness, wh...