The Hong Kong Monetary Authority (HKMA) has published Phase 2A of the Hong Kong Taxonomy for Sustainable Finance, marking a further step in the city’s efforts to channel capital towards green and sustainable economic activities and support the transition to a low-carbon economy.
Released on 22 January, the updated taxonomy builds on earlier work by the HKMA to create a clear and consistent framework for classifying economic activities that contribute to sustainability objectives. The Hong Kong Taxonomy is being developed in phases, with the first phase published in May 2024. That initial release focused on establishing a foundational structure aligned with international standards, helping financial institutions and market participants identify green activities more consistently.
Phase 2A reflects the outcome of a public consultation launched in September 2025 on a prototype designed to expand the taxonomy’s coverage and improve its usability. According to the HKMA, the consultation attracted a wide range of responses from banks, asset managers, corporates, professional bodies, non-government organisations, think tanks and public sector organisations. This broad engagement highlights the growing importance of clear sustainability classifications for both financial and non-financial stakeholders operating in Hong Kong and beyond.
Feedback from respondents was generally supportive of the proposed expansion in scope. In particular, stakeholders welcomed the inclusion of transition elements alongside a new climate change adaptation category, recognising the need to support not only fully green activities but also credible pathways for high-emitting sectors to decarbonise. Respondents also pointed to improvements in clarity and practicality, suggesting that the enhanced taxonomy would be easier to apply in real-world financing, risk assessment and disclosure processes.
Drawing on this feedback, the HKMA refined the prototype and formally published it as the Hong Kong Taxonomy for Sustainable Finance Phase 2A. Alongside the taxonomy, the authority also released a consultation report summarising stakeholder input and setting out how comments were addressed in the final version. This additional transparency is intended to help market participants understand the rationale behind key design choices and encourage consistent adoption.
The HKMA has stressed that the Hong Kong Taxonomy is a living document rather than a static rulebook. Work on the next phase is already underway and will continue to take account of market developments, government policy priorities, industry needs and technological advancements. The authority has reiterated its commitment to ongoing engagement with market participants as the framework evolves, positioning the taxonomy as a core piece of infrastructure for sustainable finance in Hong Kong.
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