Why in news
- A NITI Aayog member recommended updating green finance classification rules to allow concessional capital flow into the nuclear energy sector.
What is the green finance framework context?
- Green finance taxonomies classify sustainable investments to channel capital into low-carbon technologies.
- Historically, sovereign green bonds and ESG frameworks focused primarily on renewable sources like solar and wind, omitting nuclear power due to radioactive waste concerns.
Key recommendations and proposed changes
- Include nuclear power projects under eligible sectors for sovereign green bonds and sustainability-linked credit.
- Provide long-term, low-cost capital access to support India's target of reaching 100 GW nuclear power capacity by 2047.
- Develop specialized technical skills and local manufacturing infrastructure to lower capital expenditure for advanced reactor types.
Why it matters
- Offers firm, non-intermittent baseline power necessary for balancing grid volatility caused by renewable energy integration.
- Aligns Indian taxonomy with recent global shifts, such as the European Union's inclusion of nuclear power in its Sustainable Finance Taxonomy.
Key terms
Green Taxonomy
A statutory or regulatory classification system defining which investments and economic activities are environmentally sustainable.
Baseload Power
The minimum level of electric power required to continuously feed an electricity grid over a 24-hour period.
Prelims facts
- Sovereign green bonds in India currently fund renewable energy, energy efficiency, and clean transportation.
Mains discussion
- Role of nuclear energy as baseline power in achieving net-zero emissions by 2070.
Source: Business Standard
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2018 · Q16 · GS III · 15 marks
With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. (250 Words, 15 Marks). -
2023 · Q19 · GS II · 15 marks
'The expansion and strengthening of NATO and a stronger US-Europe strategic partnership works well in India.' What is your opinion about this statement? Give reasons and examples to support your answer. -
2026 · Q6 · GS III · 10 marks
Differentiate between a Fast Breeder Reactor (FBR) and a thermal nuclear reactor. In the context of first indigenously developed prototype FBR at Kalpakkam, explain the term 'criticality'. What are its implications for clean energy future of our country? -
2024 · Q32 · General Studies · 2 marks
Consider the following statements: Statement-I: Giant stars live much longer than dwarf stars. Statement-II: Compared to dwarf stars, giant stars have a greater rate of nuclear reactions. Which one of the following is correct in respect of the above statements? -
2020 · Q55 · General Studies · 2 marks
In India, why are some nuclear reactors kept under "IAEA Safeguards" while others are not?