HKMA launches consultation in decarbonisation push

The Hong Kong Monetary Authority (HKMA) initiated a public consultation on Monday to advance the development of the Hong Kong Taxonomy for Sustainable Finance. This initiative is part of Hong Kong's efforts to broaden the definitions for green and transition activities, aiming to stimulate capital flows while mitigating greenwashing risks.

Phase 2B of the prototype introduces 10 new economic activities, complementing the recategorization of certain Phase 2A activities, which increases the total count from 25 to 39. These enhancements include technical criteria for both green and transition measures, focusing on technologies like battery manufacturing, recycling, and low-carbon technologies.

Moreover, the updates provide transition pathways for hard-to-abate sectors such as air transport and iron and steel. The prototype also refines the methodology for climate-change adaptation, adopting a process-based approach to accommodate location-specific measures, particularly shoreline protection and flood management, which are critical to Hong Kong's climate risks. The consultation period extends until October 7.