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 recognized 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.

The updated framework now covers 39 activities, up from 25, bringing battery manufacturing and recycling, low-carbon technologies, electric buses, sustainable aviation fuel, and green marine fuels into scope. Arthur Yuen, HKMA deputy chief executive, emphasized that climate risks have become tangible financial risks, and the market needs reliable assessment methods to channel capital into projects that genuinely strengthen resilience.

The expanded taxonomy also strengthens the climate-adaptation framework and introduces a five-step process-based assessment to account for location-specific climate risks.

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