Hong Kong expands sustainable finance taxonomy to boost transition capital

The Hong Kong Monetary Authority (HKMA) has kicked off a public consultation about its Phase 2B prototype for the Hong Kong Taxonomy for Sustainable Finance. This new version adds 10 activities across various sectors, including transportation, manufacturing, and waste management. With this update, which aligns with the beginning of Green Week, the total activities have risen from 25 to 39 due to some reclassifications. The updated framework now covers electric buses, minibuses, taxis, sustainable aviation fuel, and green marine fuels like methanol and ammonia. Arthur Yuen from HKMA pointed out that climate risks are now major financial risks, emphasizing the need for this taxonomy to channel funds into climate resilience projects. The consultation aims to gather feedback on these changes to ensure Hong Kong’s financial sector meets global sustainability standards and supports a low-carbon transition, reinforcing its goal to be a leading green finance hub in Asia.