Hong Kong's Sustainable Finance Taxonomy update: Public consultation open

Hong Kong Advances Sustainable Finance with Inclusive Taxonomy Expansion The Hong Kong Monetary Authority (HKMA) has proposed a significant enhancement to its Sustainable Finance Taxonomy, marking a progressive step toward a more inclusive and pragmatic approach to climate action. This expansion introduces transition activities—a recognition that high-emitting sectors must be supported in their journey toward net zero. By incorporating sectors such as energy, manufacturing, and Information & Communications Technology sectors, and introducing climate change adaptation as a new objective, the taxonomy reflects a comprehensive understanding of the challenges and opportunities in sustainable finance. Notably, the proposal includes time-bound criteria and sector-specific sunset dates, ensuring that transition pathways remain aligned with Hong Kong’s 2050 net zero commitment. This initiative demonstrates Hong Kong’s leadership in fostering a robust and forward-looking sustainable finance ecosystem. #SustainableFinance #Taxonomy #ClimateAction

🆕 Hong Kong Advances Sustainable Finance: Introducing Transition & Adaptation Elements - Hong Kong's Monetary Authority (HKMA) has unveiled Phase 2A of its Sustainable Finance Taxonomy—moving beyond “green-only” classifications to include transition activities, new sectors, and climate adaptation. A public consultation is open until 8 October 2025. ✋ Highlights: ♻️ From Green to Transition: The taxonomy now includes carbon-intensive activities actively reducing emissions on a time-bound pathway to net zero by 2050, even if not yet fully green. 🏭 New Sectors Added: Moves beyond the original four (power, transport, construction, waste) to add manufacturing and ICT, expanding the list from 12 to 25 activities, including electricity transmission, district heating and cooling, and low-carbon infrastructure. ⏳ Sunset Dates Set: Transition activities must meet deadlines—e.g. Maritime by 2030, Energy by 2035—ensuring no carbon lock-in and alignment with global standards. 🌧️ Adaptation Now Included: A new environmental objective—Climate Change Adaptation—targets resilience, water stress, flood risk, and other physical climate threats. 📝 Next Steps: The taxonomy remains voluntary for now, pending feedback. Future additions (Phase 2B+) could include CCUS, and “Do No Significant Harm” principles. ✋ In your view, which of these updates—transition category, new sector inclusion, or adaptation objective—will be most powerful in steering capital toward sustainable transformation in Asia? #SustainableFinance #HKMA #GreenTransition #ClimateAdaptation #Taxonomy #ESG #Finance #Decarbonisation

🌏 Consultation now open: Hong Kong’s Taxonomy Phase 2A To provide a common, credible standard for sustainable investments, the Hong Kong Monetary Authority (HKMA), with technical support from Climate Bonds, has launched Phase 2A of its Sustainable Finance Taxonomy for public consultation — open until 8 October 2025. Phase 2A enhances comprehensiveness and usability by: ✔️ Adding Manufacturing and ICT sectors ✔️ Expanding coverage of existing sectors and activities ✔️ Introducing transition activities and measures ✔️ Including a new environmental objective: climate change adaptation Stakeholders across finance, business, academia, and civil society are encouraged to share feedback and help shape a taxonomy that directs capital towards transition and resilience priorities. 🔗Find out more: https://lnkd.in/dgWgVrRS

🚀 Announced during Hong Kong Green Week: the Hong Kong Monetary Authority (HKMA) has launched consultation on the Phase 2A Hong Kong Taxonomy for Sustainable Finance. With expanded coverage and new transition measures, will this milestone further strengthen Hong Kong and China’s leadership in APAC’s green development journey?

📢 Hong Kong is pushing to add transition activities into its sustainable finance taxonomy, including emissions-heavy sectors like energy, shipping, and manufacturing. Here’s what’s changing and what that means for you: • The HKMA draft (open until Oct 8, 2025) proposes Phase 2A, broadening scope beyond “green” activities to include transition steps for carbon-intensive industries to align with a 1.5°C pathway. • New sectors under consideration: manufacturing; ICT; electricity transmission & distribution; district heating/cooling; low‑carbon transport infrastructure. • Sunset dates will be required (for instance, Maritime 2030; Energy 2035) to ensure transition doesn’t drag indefinitely. • Also, adaptation is gaining equal footing with mitigation: physical climate risks and extreme weather will need more funding. 👉 Climate Adaptation is finally moving into the spotlight - and with it, a $1.3 trillion opportunity by 2030. Forward-thinking firms can deploy capital to contribute to climate resilience and tap into a rapidly growing market. Want to learn how? Download our free whitepaper on Adaptation Financing here: https://bit.ly/466Zngw Read the full HKMA article: https://bit.ly/3K2S40K #SustainableFinance #ClimateRisk #RealEstate #climateadaptation #TransitionFinance #ESG #NetZero #Regulation #GreenInvesting

Asia, Hong Kong Monetary Authority: HKMA Opens Consultation on Phase 2A of Hong Kong Sustainable Finance Taxonomy The Hong Kong Monetary Authority (HKMA) has initiated a public consultation on the Phase 2A prototype of the Hong Kong Taxonomy for Sustainable Finance. This taxonomy serves as a crucial tool for promoting informed decision-making in green and sustainable finance by providing clear definitions of green and sustainable activities, thereby addressing greenwashing concerns and enhancing capital flows. Following the release of Phase 1 in May 2024, the HKMA is advancing the taxonomy through a phased approach, with Phase 2A introducing significant enhancements. These include expanded sector coverage, adding manufacturing and information and communications technology to the existing sectors, and increasing the number of economic activities from 12 to 25. Additionally, transition elements such as interim decarbonisation targets and sunset dates have been incorporated, alongside a new environmental objective focused on climate change adaptation. The consultation, which runs until 8 October 2025, invites stakeholders to provide feedback on these developments. Source: https://lnkd.in/efirT7gU

Hong Kong to Align Sustainable Finance Taxonomy with Global Standards The move is designed to solidify Hong Kong’s position as a global leader in green and sustainable finance by providing clearer, more robust definitions for sustainable activities. https://lnkd.in/d7nPg3rp #Hongkong Hong Kong Monetary Authority (HKMA) #taxonomy #sustainablefinance #green #sustainablefinance #indiataxonomy #cleanenergy #sustainability #climateaction Renjini Liza Varghese Sonal Desai WriteCanvas (Connecting the Green Dots...) #greenfunding #cleanenergy

Phase 2 of Hong Kong’s Sustainable Finance Taxonomy: Advancing Green Finance The Hong Kong Monetary Authority (HKMA) has officially launched the Phase 2A prototype of the Hong Kong Sustainable Finance Taxonomy for public consultation. Since its inception, the Taxonomy has become a key tool for market participants to identify green and sustainable activities, mitigate greenwashing risks, and channel capital toward impactful investments. Phase 2 represents a major step forward in developing Hong Kong’s green finance ecosystem. 📌 Key updates in Phase 2A: 1️⃣ Expanded sectors – Manufacturing and Information & Communications Technology are now included, increasing the total number of sectors to six and economic activities from 12 to 25. 2️⃣ Introduction of Transition Activities – Activities that do not yet meet green criteria but can significantly reduce emissions in the short term or transition to low-carbon operations. For example, certain hydrogen production methods can become low-carbon through carbon capture or cleaner energy sources. Transition Activities and Measures help channel capital to accelerate decarbonization. 3️⃣ Climate Change Adaptation – A new category addressing climate risks such as flooding and water stress. It supports actions like installing water resource monitoring systems to enhance societal resilience and attract investment into adaptation projects. 🔍 Professional highlights: Transition Activities are distinguished from Transition Measures, balancing technological feasibility with practical needs while avoiding long-term carbon lock-in. Hong Kong becomes one of the first jurisdictions in the region to include climate change adaptation in its Taxonomy, reinforcing its leadership in green finance and climate resilience. Phase 2A remains voluntary, focusing on market capacity building, improved data transparency, and broader adoption. 💬 The HKMA invites industry feedback to refine the Taxonomy and lay the groundwork for Phase 2B and subsequent updates. Hong Kong is building a science-based, practical, and internationally aligned framework to guide capital toward low-carbon and climate-resilient economic activities. #SustainableFinance #GreenFinance #HKMA #ESG #ClimateResilience #TransitionActivities #InvestmentStrategy #CarbonReduction https://lnkd.in/gwK5BrNh

Green bonds are a relatively new type of bond used to finance #environmentally friendly projects. In a recent study, Gianfranco Gianfrate, Professor at #EDHEC, explores how external reviews and regulations influence the green bond market. They have reached a global volume of $4 trillion in 2024 but their increasing complexity requires rigorous assessment of their "shade of green." The findings show that investors pay particular attention to the greenest bonds, especially in the absence of credit ratings. Furthermore, stricter regulations, such as the EU Taxonomy, increase demand for bonds with the best climate credentials. G. Gianfrate highlights the importance of independent assessments in reducing information asymmetry and promoting #sustainable investments. https://lnkd.in/eUKCAvmv #EDHECVox #MakeAnImpact