The Hong Kong Monetary Authority (HKMA) has published the Hong Kong Taxonomy for Sustainable Finance as part of an effort to enable informed decision-making on green and facilitate relevant finance flows. The taxonomy encompasses 12 economic activities under four sectors – namely power generation, transportation, construction, and water and waste management. The HKMA said this would serve as a “pivotal tool” to raise awareness about green finance, promote common understanding on green activities, facilitate green finance flows, and provide a foundation for further applications. Alongside the taxonomy, the HKMA has published a consultation report to summarise the feedback received from the May 2023 discussion paper, together with the responses and recommendations on future work. The authority described the taxonomy as a “living document”, adding that it was undertaking the next step to expand its coverage of sectors and activities – including transition ones. The second phase of the taxonomy’s development is due to commence soon and will involve stakeholder engagement. Separately, the HKMA is set to launch the beta version of a cloud-based platform for banks to assess the potential impact of physical risks on residential and commercial buildings in Hong Kong under different climate scenarios.
The Taxonomy encompasses 12 economic activities under four sectors. The @hkmagovhk said the second phase of the Taxonomy’s development “will commence soon”.https://t.co/gnj3fn1sV0
— Regulation Asia (@RegulationAsia) May 6, 2024
