15 hours ago
1071
ARTICLE AD BOX
Ted Hisokawa Sep 08, 2025 10:09
The Hong Kong Monetary Authority initiates a public consultation on the Phase 2A prototype of the Hong Kong Taxonomy for Sustainable Finance, introducing significant enhancements to promote green finance.
The Hong Kong Monetary Authority (HKMA) has launched a public consultation on the Phase 2A prototype of the Hong Kong Taxonomy for Sustainable Finance. This initiative aims to further strengthen the framework for sustainable finance in Hong Kong, as reported by the HKMA.
Advancing Sustainable Finance
The Hong Kong Taxonomy serves as a crucial tool for promoting transparency and informed decision-making in the realm of green and sustainable finance. With clear definitions of green activities, the taxonomy seeks to increase capital flows while mitigating greenwashing risks. The Phase 2A prototype introduces enhancements to support Hong Kong’s transition to a low-carbon economy, reinforcing its status as a leading green finance hub.
Key Enhancements in Phase 2A
Building on the first phase released in May 2024, the Phase 2A prototype includes several noteworthy enhancements:
- Expanded Sector Coverage: The taxonomy now includes manufacturing and information and communications technology sectors, increasing the total number of covered sectors from four to six.
- Increased Economic Activities: An additional 13 economic activities have been incorporated, raising the total from 12 to 25, alongside updates to existing technical screening criteria.
- Transition Elements: New transition elements, including interim decarbonisation targets and measures, have been introduced to aid the transition process.
- New Environmental Objective: The introduction of climate change adaptation as a new objective addresses the growing need for funding to manage physical risks and extreme weather events.
Public Consultation Process
The consultation period is open until 8 October 2025, allowing stakeholders to provide feedback on the proposed enhancements. The consultation paper can be accessed on the HKMA website, inviting interested parties to submit their comments by the deadline.
Implications for Hong Kong's Financial Hub
These developments are part of a broader strategy to enhance Hong Kong's role as an international financial center with a strong emphasis on sustainable finance. By expanding sector coverage and introducing new objectives, the HKMA aims to align with global sustainability trends and technological advancements, ensuring Hong Kong remains at the forefront of green finance.
Image source: Shutterstock
English (US) ·