Q. Which one of the following best describes the concept of ‘Green Taxonomy’?

[A] A classification system to identify sectors contributing to climate change.

[B] A method to evaluate corporate governance and economic development.

[C] A framework for defining environmentally sustainable investments.

[D] A legal mechanism for enforcing environmental regulations in industry.

Answer: C
Notes:

Explanation:
Green taxonomy is primarily a framework that helps in defining what can be considered as environmentally sustainable investments. It classifies economic activities and assets based on their environmental sustainability, aiming to prevent greenwashing and encourage investments towards sustainable development.

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