HKMA finalises bank transition planning guidelines, widens green taxonomy
A speech by HKMA Deputy Chief Executive Arthur Yuen sets out where Hong Kong's sustainable finance framework stands: a taxonomy now in its Phase 2B prototype, transition planning guidelines just finalised for banks, and disclosure rules still being drafted. For compliance teams at Hong Kong banks, the sequencing of these three pieces matters more than the rhetoric around them.
- The Hong Kong Taxonomy's Phase 2B prototype now covers 39 mitigation activities and 28 adaptation measures.
- Transition planning guidelines for banks, covering climate risk management and client transition opportunities, have just been finalised.
- The HKMA is still developing disclosure requirements for the banking sector, a step distinct from and later than the transition planning guidelines.
- The Government Sustainable Bond Programme has issued nearly HK$280 billion in green bonds since 2019, funding over 110 government green projects.
- A Digital Green Bond issued last month is described as the world's largest digital bond issuance to date.