Experts bat for green taxonomy for climate finance

India's climate financing activities need to be buttressed by a green taxonomy and new risk management models, said a panel of experts at the Mint BFSI Summit.

- Manas Pimpalkhare

A green taxonomy is essential to inform banks whether a project is green or not, said Rohit Inamdar of CareEdge ESG Ratings. "We have set net-zero targets. Our green taxonomy has to align with those targets. RBI's disclosure framework has to dovetail into the same," he said.

A green taxonomy is a system of classification that allows lenders to reassess their risk management models in the context of extreme weather events.