Hong Kong broadens sustainable finance taxonomy framework to boost transition capital

Hong Kong has expanded its sustainable finance taxonomy framework, broadening the range of economic activities recognised as green or transition, as part of its annual Green Week. 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.

The updated framework now covers 39 activities, up from 25, including battery manufacturing, recycling, electric buses, sustainable aviation fuel, and green marine fuels such as methanol and ammonia. Arthur Yuen, deputy chief executive of the HKMA, stated that climate risks have become tangible financial risks, emphasizing the need for reliable assessment methods to channel capital into projects that genuinely strengthen resilience.

The expansion also strengthens the taxonomy's climate-adaptation framework, with a new five-step process-based assessment to account for location-specific climate risks and 24 adaptation measures.

Brief written by urgent.news from SCMP Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.