GREEN TAXONOMY: INDIA’S NEED OF AN HOUR

One of the concerns in the fast-growing economies worldwide is about meeting sustainable development goals without compromising business growth. In today’s corporate world, sustainability is a necessary concept, and it requires the attention of both individuals and corporations. Green taxonomy is the key framework to help investors make informed investment decisions for contributing to the company’s social responsibility, i.e., green financing. This paper aims to address the importance of developing regulations to maneuver in reaching our sustainable development goals and reducing the impact of emissions on the planet. It is navigating through the understanding of green taxonomy, the developments made by other countries, and India’s stand on it, highlighting the steps taken by the financial regulators in the Indian economy. The green taxonomy would not just provide a mechanism to tackle greenwashing but also many other climate concerns that are not yet identified and addressed by our nation. The paper gives an overview of the European Union legislation on sustainable activities. Various other countries have also framed a systematic regulation to deal with green investments while some are in the process of making one. This paper suggests that Indian policymakers need to shift their focus on developing a green taxonomy, a precise framework addressing all the needs of green finance world which in turn would lead to a holistic approach towards climate change, help economies to ensure proper utilization of funds in sustainable activities and reach our lower carbon emissions goals and shifting towards a greener economy on international level.