Prototype of Hong Kong Taxonomy for Sustainable Finance (Phase 2B)

The Prototype of Hong Kong Taxonomy for Sustainable Finance (Phase 2B) represents a significant step in strengthening Hong Kong’s sustainable-finance ecosystem.

It expands the taxonomy’s coverage of climate-change mitigation by adding and refining activities across transportation, manufacturing, and waste management.

Importantly, it distinguishes between Green Activities, Transition Activities, and Transition Measures, helping financial institutions identify credible pathways for decarbonising hard-to-abate sectors without encouraging carbon lock-in.

The document also introduces a more structured, process-based approach to climate adaptation, recognising that resilience investments must reflect local climate hazards, asset vulnerabilities, and operational contexts.

By linking technical criteria with measurable emissions, energy-efficiency, circular-economy, and resilience outcomes, the proposed taxonomy can improve transparency, reduce greenwashing risks, and direct capital towards Hong Kong, Mainland China, and wider Asian transition opportunities.

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