HK advances low-carbon transition with new green finance prototype and accelerator

Hong Kong Taxonomy for Sustainable Finance will launch its prototype Phase 2B during the Green Week to further improve the city’s low-carbon future, said Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.

The new prototype expands activity coverage and refines standards to reduce uncertainty, curb greenwashing, and enable better capital allocation. Hui said it will be developed with international partners to offer transition bonds and loans supporting the low-carbon transition.

Speaking at the 2026 Hong Kong Green Finance Association (HKGFA) and Greater Bay Area Green Finance Alliance (GBA-GFA) annual forum, Hui noted that together with the expanded Green and Sustainable Finance Grant Scheme, which now covers transition bonds and loans, Hong Kong is creating a comprehensive ecosystem that supports credible decarbonisation across sectors.

Hui said Hong Kong's green finance standards will be aligned with the International Financial Reporting Standards (IFRS), providing a clear pathway for large publicly accountable entities to comply with the relevant standards by 2028. He also revealed that a bilateral green currency agreement will be announced next week, marking Hong Kong's first such agreement in five years.

Ma Jun, Chairman and President of the HKGFA, said that over the past year, the Greater Bay Area Green Finance Alliance has established partnerships with multiple international institutions, including the setup of a new ESG working group to facilitate the alignment of green technology with financial and legal frameworks. He disclosed that the alliance has published several white papers on natural capital and will continue to drive market development and corporate leadership.

Cheng Wen, deputy director general of the Guangdong Local Financial Regulatory Bureau, said the balance of green loans in Guangdong Province has reached 5.13 trillion yuan (HK$5.99 trillion), accounting for one-sixth of total credit outstanding. The province is home to over 160 listed companies in green and low-carbon sectors, with annual green bond issuances exceeding 200 billion yuan.

The forum also launched the Green Accelerator, which is designed to transform green technologies into investable, scalable projects in emerging markets and developing economies. Ma noted that the accelerator aims to address the low financial close rate for green projects in emerging economies, currently at only about 10 percent.

The accelerator will focus on four priority areas, including energy transition, sustainable food systems, the circular economy, and water and climate resilience.
 

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