Hong Kong expands its green finance taxonomy
The Hong Kong Monetary Authority (HKMA) has published the next phase of its sustainable finance taxonomy, expanding the framework to include transition activities for high-emitting sectors. Released on 22 January, Phase 2A adds detail and clarity to the original taxonomy launched in 2024, aiming to help banks, investors and companies identify activities aligned with climate goals.
The Hong Kong Taxonomy is not a digital reporting tool, but rather a classification system, similar in spirit to the European Union’s Green Taxonomy. It groups activities into three categories, Green, Transition or Exclusion, based on their contribution to climate mitigation. By including transition pathways, the HKMA hopes to support industries such as energy and manufacturing in making meaningful, low-carbon shifts over time.
Crucially, the taxonomy is voluntary. For now, its role is to guide understanding and build market capacity. Whether it will be integrated into reporting regulation remains an open question.
While not an XBRL taxonomy in the technical sense, the initiative reflects a global trend towards clearer sustainability definitions.
You can read the taxonomy and consultation report on the HKMA website.
