New Delhi, Aug. 4 -- India will launch its own system this month to identify which investments qualify as climate finance, said two people familiar with the matter, providing vital clarity to mobilize capital for clean energy and net-zero goals. The final climate finance taxonomy will identify the assets, activities, and projects needed to deliver a low-carbon economy consistent with the Paris Agreement goals of mitigation, adaptation, and financing commitments. "The consultation process, with inputs from experts, academia, industry, global institutions, and government departments, is now complete. Comments were received by June-end," the first of the two people cited above said, requesting anonymity. "The comprehensive taxonomy for climate finance is ready for launch in August." The Draft Framework of India's Climate Finance Taxonomy was earlier released by the Department of Economic Affairs. The final version, shaped by extensive expert and public input, will pave the way for sector-specific guidelines and regular updates, positioning India to mobilize gobal and domestic finance for its climate and development goals. A ministry of finance spokesperson didn't respond to emailed queries. In her budget speech in February 2024, finance minister Nirmala Sitharaman said India will develop a taxonomy for climate finance to enhance the availability of capital for climate adaptation and mitigation, which will support the achievement of the country's climate commitments and green transition. "It's a major step towards building a credible, India-specific framework to channel climate finance towards clean energy, adaptation, and the decarbonisation of critical sectors," the second person mentioned above said, also speaking on the condition of anonymity. "It will serve as a key tool to align investments with India's net zero and energy security goals." That draft features a phased rollout, a hybrid classification model for both climate-supportive and transition-supportive investments, a strong focus on adaptation finance and micro, small and medium enterprises (MSMEs), robust guardrails against greenwashing, and firm alignment with national climate targets and indigenous innovation. "The objective is to facilitate greater resource flow to climate-friendly technologies and activities, enabling achievement of the country's vision to be Net Zero by 2070 while also ensuring long-term access to reliable and affordable energy," said the draft. The draft framework also aims to mobilise both public and private finance for climate mitigation, adaptation, and the decarbonization of hard-to-abate sectors, in line with India's development vision of Viksit Bharat 2047. It also proposes a two-stage rollout, a foundational taxonomy defining principles and methods, followed by detailed sector-specific annexures....