[Monthly Report] HKMA Launches Public Consultation on Phase 2B Prototype of Hong Kong Taxonomy for Sustainable Finance

HKMA Launches Public Consultation on Phase 2B Prototype of Hong Kong Taxonomy for Sustainable Finance

On 7 September 2026, the Hong Kong Monetary Authority (“HKMA”) officially released the Phase 2B Prototype of Hong Kong Taxonomy for Sustainable Finance (“the Hong Kong Taxonomy”) and launched a one‑month public consultation closing on 7 October 2026. As a core tool of Hong Kong’s green‑finance ecosystem, Phase 2B further expands the list of economic activities, improves transition‑finance pathways and innovates climate change adaptation assessment methodologies. It is expected to further mitigate market greenwashing risks and reinforce Hong Kong’s role as Asia’s hub for green and sustainable finance.

• Phase 1 (May 2024): Covering four sectors including Energy, Transport, Construction and Waste. It included 12 green activities and covered green activities only with no transition category.
• Phase 2A (January 2025): Added the Manufacturing and ICT sectors, introduced the Transition framework for the first time and incorporated the climate change adaptation environmental objective, totaling 25 activities.
• Phase 2B (this consultation prototype):

Ø  Broadening climate change mitigation activities: Ten new economic activities are added together with relevant technical criteria for green and transition activities and measures. Re‑categorisation of certain Phase 2A activities brings the total number of economic activities from 25 to 39.

Ø  Accelerating regional transition: Leveraging Hong Kong’s strengths as an international financial centre, Phase 2B adds key enabling‑technology entries such as the manufacture and recycling of batteries. It also puts forward practical transition pathways for hard‑to‑abate sectors including air transport and iron and steel to channel capital for regional decarbonisation.

Ø  Enhancing climate change adaptation methodology: Given the highly location‑specific nature of climate change adaptation, Phase 2B introduces a process‑based approach to manage maladaptation risks. 24 adaptation measures are newly added (including 11 whitelist measures and 13 non‑whitelist measures), prioritising shoreline protection and flood management, two key climate‑risk areas for Hong Kong.

Balancing international prevailing standards and the industrial realities of the Asia‑Pacific region, the Hong Kong Taxonomy features two dedicated mechanisms for transition activities and transition measures. Distinct from classification frameworks that only focus on brand‑new green projects, it delivers practical value for low‑carbon transformation of high‑energy‑consuming industries in mainland China and Asia.

At this stage, the Hong Kong Taxonomy is a market‑enabling tool for voluntary adoption. Financial institutions and real‑economy enterprises may refer to it for project screening in green lending, transition‑finance and sustainable bonds. In the long run, the HKMA will explore the possibility of incorporating it into banking supervisory policies.

Lianhe Green believes that Phase 2B further clarifies the assessment logic for green and transition financing and provides clearer reference for market participants. It can effectively facilitate efficient capital allocation to low‑carbon‑transition‑related areas and strengthen Hong Kong’s tool‑based support for Asia‑Pacific sustainable investment and financing. It is expected that this public consultation will fully collect practical feedback from all sectors, and subsequent versions will continuously refine relevant supporting rules to further enhance the overall completeness and practical implementability of the Hong Kong Taxonomy.

Source: Hong Kong Monetary Authority (Consultation on Phase 2B prototype of Hong Kong Taxonomy for Sustainable Finance Enclosure: Prototype of Hong Kong Taxonomy for Sustainable Finance (Phase 2B))