{"id":293599,"date":"2024-04-30T14:43:49","date_gmt":"2024-04-30T09:13:49","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=293599"},"modified":"2024-04-30T16:51:10","modified_gmt":"2024-04-30T11:21:10","slug":"green-taxonomy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/green-taxonomy\/","title":{"rendered":"Green taxonomy"},"content":{"rendered":"<p><strong>Source-<\/strong>This post on<strong> Green taxonomy <\/strong>is based on the article <strong><a href=\"https:\/\/www.thehindu.com\/opinion\/editorial\/towards-a-green-growth-the-hindu-editorial-on-the-rbi-and-a-green-taxonomy\/article68117880.ece\" target=\"_blank\" rel=\"noopener\">&#8220;Towards a green growth: On the RBI and a green taxonomy&#8221;<\/a>\u00a0<\/strong>published in \u201cThe Hindu\u201d on 28th March 2024.<\/p>\n<h2>Why in the news?<\/h2>\n<p>The latest RBI\u2019s Monetary Policy Report <span style=\"color: #ff0000;\">gives primacy to the impact of climate shocks on the economy\u2019s financial stability<\/span>. This reflects RBI&#8217;s step towards the adoption of the system of green taxonomy, being used by the ASEAN countries.<\/p>\n<h2>About green taxonomy<\/h2>\n<figure style=\"width: 564px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"\" src=\"https:\/\/i0.wp.com\/ieefa.org\/sites\/default\/files\/2022-08\/Fact-sheet-green-taxonomy-image.jpg?resize=564%2C376&#038;ssl=1\" alt=\"Green taxonomies\" width=\"564\" height=\"376\" \/><figcaption class=\"wp-caption-text\">Source: IEEFA<\/figcaption><\/figure>\n<p><strong>1. About green taxonomy:<\/strong> Green taxonomy is a framework <span style=\"color: #ff0000;\"><span style=\"color: #333333;\">that is used to<\/span> determine environmentally sustainable investment <span style=\"color: #333333;\">in the economy. It helps in classification of whether the economic activities as green and environmentally sustainable.<\/span><\/span><\/p>\n<p><strong>2. Aim:<\/strong> It aims to <span style=\"color: #ff0000;\">increase investment in green activities and assets<\/span> and <span style=\"color: #ff0000;\">facilitate the detection of greenwashing practices<\/span>.<\/p>\n<p><strong>3. Necessity of incorporation of green taxonomies:\u00a0<\/strong><\/p>\n<p>a) It<span style=\"color: #ff0000;\"><span style=\"color: #333333;\"> helps the<\/span> financial markets to align their investments <span style=\"color: #333333;\">with the goal<\/span> of net-zero emissions.<\/span><\/p>\n<p>b) It also helps in the <span style=\"color: #ff0000;\">cultivation of an environmentally sustainable economy.<span style=\"color: #333333;\"> It also helps to<\/span> reorient capital <span style=\"color: #333333;\">towards environmentally sustainable economic activities.<\/span><\/span><\/p>\n<p><strong>4. How RBI and Finance Ministry can utilise green taxonomy:<\/strong><\/p>\n<p>a) The RBI and Finance Ministry can draw<span style=\"color: #ff0000;\"> lessons from the ASEAN region. The ASEAN countries<\/span> have<span style=\"color: #ff0000;\"> adopted a dynamic green taxonomy, <span style=\"color: #333333;\">which is<\/span><\/span><span style=\"color: #333333;\"> c<\/span>ontinuously updated according to the evolving sustainable practices in different sectors.<\/p>\n<p>b) RBI has taken positive steps towards green taxonomy by issuing <span style=\"color: #ff0000;\">Sovereign Green Bonds<\/span> and <span style=\"color: #ff0000;\">expanding participation in green government securities<\/span> by Foreign Institutional Investors.<\/p>\n<p><strong>UPSC Syllabus: Environment, Economy<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source-This post on Green taxonomy is based on the article &#8220;Towards a green growth: On the RBI and a green taxonomy&#8221;\u00a0published in \u201cThe Hindu\u201d on 28th March 2024. Why in the news? The latest RBI\u2019s Monetary Policy Report gives primacy to the impact of climate shocks on the economy\u2019s financial stability. This reflects RBI&#8217;s step&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/green-taxonomy\/\">Continue reading <span class=\"screen-reader-text\">Green taxonomy<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,4182],"tags":[11872,10498],"class_list":["post-293599","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-environment","tag-9pm-daily-factly","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/293599","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=293599"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/293599\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=293599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=293599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=293599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}