{"id":25313,"date":"2024-07-24T12:12:40","date_gmt":"2024-07-24T06:42:40","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=25313"},"modified":"2025-04-07T17:02:11","modified_gmt":"2025-04-07T11:32:11","slug":"climate-finance-taxonomy","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/climate-finance-taxonomy\/","title":{"rendered":"What is Climate Finance Taxonomy?"},"content":{"rendered":"<h2>About Climate Finance Taxonomy:\u00a0<\/h2>\n<ul>\n<li>It is a system that <strong>classifies<\/strong> which parts of the economy may be <strong>marketed as sustainable investments.<\/strong><\/li>\n<li>It helps guide investors and banks in directing trillions toward impactful investments to tackle climate change.<\/li>\n<li>Taxonomies are frequently used to set standards for <strong>classifying climate-related financial instruments<\/strong> (e.g., green bonds), but, increasingly, they serve other use cases where the benchmarking feature is viewed as beneficial, including in the areas of climate risk management, net-zero transition planning, and climate disclosure.<\/li>\n<li>South Africa, Colombia, South Korea, Thailand, Singapore, Canada, and Mexico are some of the countries which have developed taxonomies. The European Union has done this as well.<\/li>\n<li><strong>Significance<\/strong>\n<ul>\n<li>With global temperatures soaring, and the adverse effects of climate change exacerbating, countries need to transition to a net-zero economy \u2014 the balance between the amount of greenhouse gas (GHG) that is produced, and the amount that is removed from the atmosphere.<\/li>\n<li>It can play a pivotal role in doing this as they can help ascertain if economic activities are <strong>aligned with credible<\/strong>, <strong>science-based transition pathways<\/strong>.<\/li>\n<li>They can also give impetus to deployment of climate capital, and reduce the risks of greenwashing.<\/li>\n<li>It will <strong>enhance the availability of capital<\/strong> for climate adaptation and mitigation. This will help India achieve its climate commitments and green transition.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1: What are Sustainable Development Goals (SDGs)?<\/h3>\n<p>They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth \u2013 all while tackling climate change and working to preserve our oceans and forests.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/everyday-explainers\/climate-finance-taxonomy-9470655\/\" target=\"_blank\" rel=\"nofollow noopener\">What is a climate finance taxonomy, announced by FM Sitharaman?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Climate Finance Taxonomy is a system that classifies which parts of the economy may be marketed as sustainable investments.<\/p>\n","protected":false},"author":5,"featured_media":25314,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-25313","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/25313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=25313"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/25313\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/25314"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=25313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=25313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=25313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}