What are the Oojectives of the Climate Finance Taxonomy ? What is Greenwashing in this context ?

 

Quiestin : What are the Objectives of the Climate Finance Taxonomy ?

Ans : 

The climate finance taxonomy is a tool to identify activities consistent with India’s climate action goals and transition pathway. 

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. 

The taxonomy should also prevent "greenwashing". The taxonomy shall be consistent with the developmental goal of ‘Viksit Bharat’ to be achieved by 2047. 

Specifically, the taxonomy will cover technologies, measures, projects and activities that are aligned to:- 

a) Mitigation- which includes improvements in energy efficiency or reduction in emission intensity, and avoidance of GHG emissions including through the expansion of non-fossil fuel energy, etc.,

 b) Adaptation- action that enhances resilience, including sustainable water management, ecosystem protection and restoration, and geography-specific adaptation measures to lower the negative impacts of climate change. 

c) Support transition of hard-to-abate sectors- Transition activities in line with the specific pathway for hard-to-abate industries, innovation and R&D facilitate low carbon pathways considering the available technology, its access and viability

What is Greenwashing in this context ?

Ans : 

Greenwashing in the context of the Climate Finance Taxonomy refers to misrepresentation of activities as being climate-aligned, either intentional or due to gross negligence