ECONOMY
India’s climate-funding bill for net-zero emission by 2030 put at $2.5 trillion
- IBJ Bureau
- May 08, 2025
India may require financing to the tune of $2.5 trillion by 2030 for climate transition, given its pledge to achieve net-zero emission by 2070, the government has said.
“India’s climate finance taxonomy will facilitate greater resource flow to climate-friendly technologies and activities, enabling India to achieve the vision of being net zero by 2070, while ensuring long-term access to reliable and affordable energy,” the Department of Economic Affairs has said in a draft paper: India’s Climate Finance Taxonomy.
However, the report has not revealed any specific tax measures to be taken to support the green transition. Those details are understood to have been shared with experts.
The framework is aimed at greater resource flow to climate-friendly technologies and activities. Preventing “green-washing” – deceptive or exaggerated claims about the environmental benefits of products or services– is also a key goal.
The public feedback on the draft is sought by June 25, 2025.
To begin with, power, mobility and buildings will be a part of the taxonomy in the context of climate mitigation and adaptation benefits. Agriculture, food and water security will be in the context of climate adaptation and resilience building. As for addressing transition in line with country circumstances in hard-to-abate sectors, iron, steel and cement will be considered at the outset.
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