The Hong Kong Monetary Authority (HKMA) has launched a public consultation on the Phase 2A prototype of the Hong Kong Taxonomy for Sustainable Finance, advancing the city’s efforts to define and scale credible green and sustainable finance.

Below are the Key highlights of Phase 2A:

• Expanded Sector Coverage
  Adds two major sectors: manufacturing and information & communications technology. This brings the total covered industries to six.

• Broader Activity Scope
  Increases the number of defined green and sustainable economic activities from 12 to 25, with updated technical screening criteria for existing ones.

• Transition Finance Integration
  Introduces “transition activities” and “transition measures” aimed at supporting high-emission sectors in their decarbonization journey. These include interim emissions targets and mandatory sunset dates to ensure credibility and accountability.

• New Environmental Objective: Climate Change Adaptation
  Adds a sixth objective to address physical climate risks and support resilience-building efforts across infrastructure and communities.

• Living Framework with Future Updates
  HKMA positions the taxonomy as a dynamic tool that will evolve over time, with Phase 2B and further enhancements planned.

The overarching goal of the taxonomy is to mobilize capital toward projects with measurable environmental benefits, while maintaining scientific integrity and market credibility. By setting clear, consistent definitions, the framework helps combat greenwashing and provides clarity for investors, issuers, and regulators alike. It also supports Hong Kong’s strategic ambition to align with global sustainable finance standards and reinforce its status as a regional green finance hub.

The consultation remains open until 8 October 2025, and input from stakeholders will be instrumental in shaping the next phase of development.

Source:

https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/09/20250908-3/