HKMA launches public consultation on Phase 2B prototype of Hong Kong Taxonomy for Sustainable Finance
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The Hong Kong Monetary Authority (HKMA) launched a public consultation today (September 7) on Phase 2B prototype of the Hong Kong Taxonomy for Sustainable Finance (Hong Kong Taxonomy).
The Hong Kong Taxonomy is an important market enabling tool for promoting informed decision-making in green and sustainable finance. By providing clear, transparent, and robust definitions of what constitutes green and sustainable activities, the taxonomy aims to scale up relevant capital flows while addressing greenwashing concerns.
Following the publication of Phase 2A of the Hong Kong Taxonomy earlier this year, the HKMA has continued to enhance the framework. Guided by market feedback, government policies, industry needs, and the latest developments in technology and climate science, the Phase 2B prototype introduces a number of enhancements that further support Hong Kong's decarbonisation efforts, facilitate the region's transition to a low-carbon economy, and reinforce Hong Kong's position as an international financial centre and a leading hub for green and sustainable finance.
The key features of Phase 2B prototype include:
- Broadening climate change mitigation activities: 10 new economic activities are added, with technical criteria for green and transition activities and measures where applicable. Together with re-categorisation of some Phase 2A activities, the total number of economic activities is increased from 25 to 39.
- Accelerating regional transition: Leveraging Hong Kong's position as an international financial centre, Phase 2B scales financing towards climate change mitigation activities that are critical for accelerating regional decarbonisation. Phase 2B adds key enabling technologies that can support the development of other decarbonisation applications, such as the manufacture and recycling of batteries, and the manufacture of low-carbon technologies. It also provides practical transition pathways for hard-to-abate sectors like air transport, and iron and steel, so as to channel capital towards supporting their progressive decarbonisation.
- Enhancing climate change adaptation methodology: Given the highly location-specific nature of climate change adaptation, measures required to address the same climate risk may vary depending on actual circumstances and environmental factors. Phase 2B therefore introduces a process-based approach, providing the market with clear guidance through a systematic framework to ensure that relevant measures make a substantial contribution to climate change adaptation and appropriately manage maladaptation risks (Note 1). With reference to guidelines by the Hong Kong Special Administrative Region Government (Note 2), Phase 2B introduces 24 adaptation measures (including 11 whitelist measures and 13 non-whitelist measures (Note 3)). The initial focus is on shoreline protection and flood management, which are closely related to the key climate risks faced by Hong Kong.
The public consultation commences today and will last until October 7. The consultation paper is available on the HKMA website. Interested parties are invited to submit their comments on or before the deadline.
Note 1: Maladaptation refers to counterproductive outcomes that may result if adaptation measures are not designed properly. For example, the unintended transfer of risk to neighbouring areas when protecting a specific location.
Note 2: Including the Shoreline Management Guideline for Coastal Development by the Civil Engineering and Development Department, and Drainage Services Department Practice Note No. 2/2023 - Guidelines on Flood Resilience by the Drainage Services Department.
Note 3: "Whitelist" measures have undergone rigorous assessment and can be directly adopted and deemed to comply with the Hong Kong Taxonomy, while "non-whitelist" measures must be assessed with the process-based approach.
Ends/Monday, September 7, 2026
Issued at HKT 11:20
Issued at HKT 11:20
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