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Banking & finance
BusinessBanking & Finance

Hong Kong introduces green finance taxonomy to boost city’s fundraising credentials

  • The Hong Kong Taxonomy for Sustainable Finance is a milestone in the city’s green finance landscape, HKMA CEO Eddie Yue says
  • The taxonomy covers 12 economic activities under four industry sectors, namely energy, transport, construction, and water and waste management

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The Hong Kong government has extended the US$100 billion Green and Sustainable Finance Grant Scheme, which will cover transition bonds and loans for companies to upgrade their equipment to save energy and cut down on pollution. Photo: Eugene Lee
Enoch Yiu
The Hong Kong Monetary Authority (HKMA) has issued a “green taxonomy” framework to help banks and investors determine the sustainability of economic activities, the de facto central bank’s latest effort to boost the city’s standing as a green finance centre.
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“The release of the Hong Kong Taxonomy for Sustainable Finance marks a key milestone for Hong Kong’s sustainable finance landscape,” Eddie Yue Wai-man, CEO of HKMA, said in a statement on Friday.

“By providing a common language and framework for sustainable finance, we are equipping market participants with an important tool to make informed decisions, drive impactful cross-border investments and contribute to global efforts in combating climate change.”

The taxonomy covers 12 economic activities under four sectors: energy, transport, construction, and water and waste management.

The green taxonomy provides a common language and framework for sustainable finance, HKMA CEO Eddie Yue said. Photo: Xiaomei Chen
The green taxonomy provides a common language and framework for sustainable finance, HKMA CEO Eddie Yue said. Photo: Xiaomei Chen

Having a taxonomy is important to prevent “greenwashing”, the act of making unsubstantiated claims about the environmental benefits of a product or practice.

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