HKMA launches phase 2A of sustainable finance taxonomy to support green economy

The Hong Kong Monetary Authority announced the publication of Hong Kong taxonomy for sustainable finance phase 2A on Thursday, contributing to the region's transition to a low-carbon economy.

The launch of this latest classification marks an important step in facilitating green and sustainable capital flows, said the HKMA.

This green taxonomy has been developed in phases to establish a robust and transparent framework for classifying economic activities that support green and sustainable development, added the HKMA.

The HKMA initiated a public consultation on the phase 2A prototype in September last year to gather feedback on the expanded taxonomy coverage and proposed enhancements, after releasing Phase 1 in May 2024.

Receiving submissions from a diverse group of stakeholders such as banks, professional associations, respondents generally supported the expansion in taxonomy coverage and the addition of transition elements and climate change adaptation category, according to the HKMA.

The HKMA said that the next phase's development is underway and will continue to be informed by market developments, government policies, industry priorities, and the latest technological advancements.