Leveraging Green Budgeting for Green Finance
Green budgeting in India can act as a key instrument. States have shown willingness to experiment, but the next phase demands moving from ad-hoc tagging toward a structured, finance-linked approach. The forthcoming Indian Climate Finance Taxonomy, if designed with interoperability and state-level applicability in mind, could provide the common language needed to make green budgeting credible, comparable, and investable.Ultimately, success will depend on how well states integrate this taxonomy with financing strategies and institutional capacity. Doing so will help states to tap into the growing pools of global green finance. Green budgets, then, are not just about classifying expenditures—they are about signaling seriousness, building trust with investors, and ensuring that climate priorities translate into bankable, funded action.
Jan 23
