The Hong Kong Monetary Authority has released a Phase 2B prototype of the Hong Kong Taxonomy for Sustainable Finance for public consultation, extending the classification framework used by the city's banks and investors to identify green and transition activities. The prototype, published on 7 September 2026, adds ten new economic activities and 24 climate change adaptation measures, 11 of them whitelisted, to the taxonomy.
The new activities include enabling technologies such as the manufacture and recycling of batteries and the manufacture of low-carbon technologies, as well as transition pathways for hard-to-abate sectors such as air transport and iron and steel, which, together with the re-categorisation of some Phase 2A activities, takes the total number of economic activities from 25 to 39. Phase 2B also introduces a process-based methodology for climate change adaptation and 24 adaptation measures, including 11 whitelist and 13 non-whitelist measures, with an initial focus on shoreline protection and flood management.
BUILDING ON PHASE 1 AND 2A
Phase 2B builds on the first phase of the Hong Kong Taxonomy published in May 2024 and on Phase 2A, published in January 2026.
The Hong Kong Taxonomy has been designed since its first phase for interoperability with the Common Ground Taxonomy and other international frameworks.
The hard-to-abate sectors added under Phase 2B, such as air transport and iron and steel, are central to regional decarbonisation, and their inclusion is intended to channel capital towards their progressive transition. Whitelist measures have undergone rigorous assessment and can be directly adopted and deemed to comply with the taxonomy, while non-whitelist measures must be assessed using the process-based approach.
SUPPORTING GREEN AND TRANSITION FINANCE
The HKMA said the Phase 2B prototype will further support Hong Kong's decarbonisation efforts, facilitate the region's transition to a low-carbon economy and reinforce the city's position as a leading hub for green and sustainable finance. It invited interested parties to submit comments.
The consultation runs until 7 October 2026.
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