Signal Hong Kong Tables Adaptation Framework Under New Taxonomy Phase

Summary

The Hong Kong Monetary Authority published a draft climate adaptation framework under its sustainable finance taxonomy, timed to coincide with the opening of the third Hong Kong Green Week. The publication forms part of the taxonomy's 2B phase update, which adds ten new climate mitigation-related economic activities along with transition technologies for carbon-intensive sectors such as steel. Initial adaptation measures focus on Hong Kong's greatest climate risks, coastline protection and flood management. The framework broadly aligns with four of the EU taxonomy's six environmental objectives, water resources, pollution prevention, biodiversity and the circular economy, securing interoperability. It also adopts a whitelist approach borrowed from the Climate Bonds Resilience Taxonomy, under which some adaptation measures are automatically recognized without separate criteria. The publication is seen as an effort by Hong Kong to align more closely with global climate finance standards.