Phase 2B taxonomy expands green activities to 39
The Hong Kong Monetary Authority launched a public consultation on September 7, 2026, on the Phase 2B prototype of its Sustainable Finance Taxonomy. The proposal expands eligible activities from 25 to 39 and runs through October 7, 2026.
Ten new activities and heavy industry pathways
The Phase 2B prototype increases the total number of defined economic activities under the Hong Kong Taxonomy for Sustainable Finance from 25 to 39. The update adds 10 new climate change mitigation activities alongside a re-categorisation of existing Phase 2A elements.
The framework incorporates technical criteria for enabling technologies, including battery manufacturing, battery recycling, and the production of low-carbon technologies.
Furthermore, Phase 2B establishes practical transition pathways for hard-to-abate sectors such as aviation, iron, and steel.
The framework aims to direct capital flows into progressive decarbonisation efforts while establishing clear parameters to curb greenwashing risks across the region.
Process-based adaptation against climate risks
Beyond mitigation, the updated taxonomy establishes a process-based methodology for climate change adaptation to prevent maladaptation risks.
Referencing HKSAR Government guidelines on flood resilience and coastal management, the framework introduces 24 specific adaptation measures.
These include 11 pre-assessed whitelist measures deemed compliant upon adoption and 13 non-whitelist measures requiring systematic evaluation, with priority placed on shoreline protection and flood management.
Clear boundaries, tough implementation ahead
Adding hard-to-abate sectors and adaptation whitelists delivers vital technical clarity for regional issuers.
The framework risks friction if non-whitelist criteria prove excessively burdensome for mid-tier institutions to verify.
Hong Kong nevertheless cements its benchmark role by tying local guidelines directly into transition standards.
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