Chapter I: Introduction

The Hong Kong Monetary Authority (HKMA) developed the Hong Kong Taxonomy for Sustainable Finance to classify environmentally sustainable activities and scale capital towards Hong Kong’s carbon neutrality target before 2050. The Climate Action Plan 2050 allocates around HK$240 billion over 15–20 years for mitigation and adaptation.

Phase 1 focused on climate change mitigation across energy, transport, construction and waste. Phase 2A expands coverage to manufacturing and information and communications technology (ICT), introduces transition activities and measures with sunset dates, and adds climate change adaptation as a second environmental objective. The framework aligns with international taxonomies while reflecting Hong Kong and regional circumstances. Adoption is voluntary, with potential future supervisory integration.

Chapter II: Climate change mitigation

The Taxonomy classifies activities as Green, Transition or Exclusion. Transition categories are time-bound (for example, 2030 for maritime and 2035 for energy) to avoid carbon lock-in and align with 1.5°C pathways.

Energy

Energy contributed about 61% of emissions in 2023. Green electricity generation must meet lifecycle thresholds of ≤100 gCO₂e/kWh (2025–2035), tightening to ≤50 from 2036. Transition thresholds are ≤255 gCO₂e/kWh to 2030 and ≤145 to 2035. Solar and wind qualify automatically. New activities include electricity storage, district heating and cooling, and transmission and distribution of renewable and low-carbon gases.

Transportation

Transport accounted for around 18% of emissions in 2023. Land transport requires zero tailpipe CO₂ emissions for green classification. Maritime thresholds decline linearly to zero by 2050, aligned with the IMO Fourth GHG Study. Transition options require a 40% reduction in emissions by 2030 compared to 2008 or compliance with EEDI/EEXI standards, supported by managed retrofit plans. Fossil fuel-dedicated infrastructure is excluded.

Construction

Buildings represent about 90% of electricity use and over 60% of emissions. Renovations must achieve at least 30% reductions in energy use or emissions. New buildings must meet recognised certification standards (for example, BEAM Plus Gold, LEED Gold, NABERS five stars). High-efficiency equipment and renewable or low-carbon technologies are eligible.

Waste

Waste generated 8.5% of emissions in 2023. Eligible activities include anaerobic digestion of sewage sludge and bio-waste and source-segregated waste collection. Criteria require methane monitoring and productive biogas use.

Manufacturing

Manufacturing addresses hard-to-abate sectors. Green hydrogen thresholds decline from 3.384 kgCO₂e/kg H₂ in 2025 to zero by 2050. Transition hydrogen (electrolysis only) is capped at 4.86 kgCO₂e/kg H₂ until 2035.

For aluminium smelting, green thresholds fall from 1.484 tCO₂e/t Al in 2025 to 0.311 by 2050. Transition thresholds apply until 2035. Secondary aluminium is automatically green.

Information and communications technology (ICT)

Data centres must meet Power Usage Effectiveness thresholds (for example, ≤1.35 at 100% IT load) or operate on 100% renewable or low-carbon energy (≤100 gCO₂e/kWh). Water Usage Effectiveness limits and refrigerant GWP ≤675 apply. Transition thresholds apply to retrofits until 2035. ICT solutions that demonstrably reduce emissions in other sectors qualify if independently verified.

Chapter III: Climate change adaptation

The Adaptation Framework adopts a whitelist approach, initially focused on the water sector due to flood damage and water stress risks. Global economic losses from extreme weather exceeded US$2 trillion between 2014 and 2023.

Four adapting measures are included: stormwater separation, water metering, automated water control systems, and water resource monitoring equipment. Only CapEx and OpEx qualify. The framework follows a phased approach, with additional hazards and sectors to be incorporated over time.

Chapter IV: Looking forward

Future phases may include natural gas, nuclear, aviation, cement, iron and steel, recycling and carbon capture. Further development of adaptation and potential inclusion of “Do No Significant Harm” considerations are under review.