The Hong Kong Monetary Authority (HKMA) has published Phase 2A of the Hong Kong Taxonomy for Sustainable Finance, marking a further step in strengthening the city’s framework for green and sustainable finance.
The updated taxonomy is designed to support the flow of capital into environmentally sustainable activities and to provide greater clarity for financial institutions, investors and corporates seeking to align with climate and sustainability objectives.
The Hong Kong Taxonomy has been developed in stages, with the first phase released in May 2024. Phase 2A builds on this foundation by expanding the scope of economic activities covered and introducing new elements focused on climate transition and climate change adaptation. The aim is to create a more comprehensive classification system that reflects the practical realities faced by financial institutions when assessing and reporting on sustainable finance.
Ahead of the publication, the HKMA launched a public consultation on the Phase 2A prototype in September 2025. This process attracted responses from a wide range of stakeholders, including banks, asset managers, corporates, professional bodies, non-government organisations, think tanks and public sector representatives. Feedback from respondents was largely positive, with broad support for the expanded coverage and the inclusion of transition-related activities, which recognise the need for carbon-intensive sectors to move gradually towards lower-emission models.
Stakeholders also welcomed the introduction of a dedicated climate change adaptation category, reflecting growing awareness that resilience and adaptation are as important as mitigation in the transition to a low-carbon economy. Many respondents highlighted the value of improved clarity and usability within the taxonomy, particularly in helping firms to interpret sustainability requirements and integrate them into risk management, disclosures and investment strategies.
Drawing on this feedback, the HKMA refined the prototype and formally released it as Phase 2A, alongside a consultation report summarising stakeholder responses and the authority’s policy decisions. This report provides additional transparency on how industry views have shaped the final framework.
The HKMA described the Hong Kong Taxonomy as a living document that will continue to evolve in line with market developments, regulatory priorities and technological progress. Work on the next phase is already underway, with ongoing engagement planned between the regulator and industry participants. Over time, the taxonomy is expected to play a central role in positioning Hong Kong as a regional hub for sustainable finance, while supporting wider policy goals linked to climate transition and green growth.
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