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Global emissions gap widens | The UN says the world’s three largest emitters are off track, with global emissions continuing to rise. Scientists estimate a 60% cut is needed this decade to stay below 1.5°C, but current national pledges project only a 10% reduction. Fewer than one-third of countries have submitted updated climate plans under the Paris Agreement, while the US withdrew during the Trump administration. Europe has not delivered deeper cuts, and China faces criticism for under-committing.
Opinion
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CNBC TV18•30-01-2026, 17:08

India's Climate Finance Taxonomy: Balancing Development and Discipline for a Green Transition

  • •India's Ministry of Finance released a draft climate finance taxonomy in May 2025, aiming to integrate climate finance into the nation's financial architecture.
  • •The taxonomy must prioritize development, considering India's diversity and uneven development, and perform effectively across various climate realities from Assam to Kerala.
  • •Future climate-linked regulation should be predictable, proportional, and adaptable to ensure long-term capital formation and avoid systemic friction.
  • •Key design gaps include unclear application of "Do No Significant Harm" (DNSH) principles, the need for time-bound thresholds for transition activities, and a uniform classification logic that may misprice risk.
  • •The taxonomy needs to be more nuanced, federal, and operational, with a stronger focus on adaptation finance, to achieve India's Viksit@2047 goals.

Why It Matters: India's climate finance taxonomy must balance development with robust, adaptable design to effectively fund its green transition.

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