The Hong Kong Monetary Authority ("HKMA") has launched a public consultation on the Phase 2A prototype of the Hong Kong Taxonomy for Sustainable Finance. The prototype includes new sectors, economic activities, transition elements, and environmental objectives to support the region's decarbonization efforts and reinforce Hong Kong's position as a green finance hub. The consultation runs from 8 September to 8 October 2025.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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The Hong Kong Monetary Authority ("HKMA") has initiated a public consultation on the Phase 2A prototype of the Hong Kong Taxonomy for Sustainable Finance (Hong Kong Taxonomy), commencing today (8 September).
The Hong Kong Taxonomy serves as a critical market tool to promote informed decision-making in green and sustainable finance. By offering clear, transparent, and robust definitions of green and sustainable activities, the taxonomy aims to scale up relevant capital flows and mitigate greenwashing concerns.
Following the publication of Phase 1 in May 2024, the HKMA is adopting a phased approach to further develop the taxonomy. Phase 2A introduces enhancements aligned with Hong Kong's decarbonisation efforts, facilitating its transition to a low-carbon economy, and reinforcing its position as an international financial hub and leading green finance center. The prototype development has been guided by market feedback, government policies, industry needs, and technological advancements.
The key enhancements in the Phase 2A prototype include expanded sector coverage, an increase in economic activities, transition elements, and a new environmental objective. Specifically, the prototype adds two new sectors (manufacturing and information and communications technology) to the initial four sectors, increasing the total to six. It also introduces 13 new economic activities, bringing the total to 25. Additionally, transition elements such as interim decarbonisation targets, support measures, and sunset dates have been added, along with a new environmental objective focusing on climate change adaptation to address growing funding needs for managing physical risks and extreme weather events.
The public consultation will run until 8 October 2025. Interested parties are invited to submit comments on the HKMA website.
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