Hong Kong Taxonomy for Sustainable Finance (Phase 2A)

The Hong Kong Taxonomy for Sustainable Finance (Phase 2A) strengthens market clarity by defining what qualifies as Green versus Transition economic activity, helping capital move to credible decarbonisation pathways.

Phase 2A broadens coverage beyond Phase 1 by adding Manufacturing and ICT, expanding Energy and Transportation, and introducing transition measures with time-bound sunset dates (e.g., maritime by 2030, energy by 2035).

This structure supports near-term emissions reduction while reducing risks of carbon lock-in by requiring new activities to meet Green criteria at inception.

Importantly, Phase 2A also adds climate adaptation as an environmental objective, starting with a pragmatic whitelist approach in the Water sector to address flood damage and water stress.

Overall, the taxonomy can improve comparability, reduce greenwashing concerns, and guide product development across banks, corporates, and investors.

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