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Hong Kong broadens sustainable finance taxonomy framework to boost transition capital
As Green Week kicks off, the HKMA expands its finance taxonomy to channel capital into projects that build climate resilience
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Hong Kong unveiled an expanded sustainable finance taxonomy as the city kicked off its annual Green Week on Monday, broadening the range of economic activities recognised as green or transition.
The Hong Kong Monetary Authority (HKMA) launched a public consultation on the Phase 2B prototype of its Hong Kong Taxonomy for Sustainable Finance, adding 10 activities across transportation, manufacturing and waste management.
Together with the reclassification of existing categories, the climate-mitigation framework now covers 39 activities, up from 25.
The expansion brings battery manufacturing and recycling and other low-carbon technologies into scope, while providing transition pathways for hard-to-abate industries including aviation and steelmaking.
Climate risks have become tangible financial risks
It also covers electric buses, minibuses and taxis, sustainable aviation fuel and green marine fuels such as methanol and ammonia.
“Climate risks have become tangible financial risks,” Arthur Yuen Kwok-hang, HKMA deputy chief executive, said in an article published on Monday, adding that the market needed reliable assessment methods to channel capital into projects that genuinely strengthened resilience.
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