The Hong Kong Monetary Authority released the Phase 2A "Sustainable Finance Classification Framework" to include transformation elements

The Hong Kong Monetary Authority (HKMA) has released the Phase 2A of the "Hong Kong Sustainable Finance Classification Framework," indicating an important step towards promoting green and sustainable financial flows and supporting low-carbon transformation in the region. The HKMA stated that the earlier consultation generally received support for expanding the scope of the classification framework, incorporating transition elements, and adding categories for climate change adaptation. Last Year's Public Consultation Generally Supported Expanding the Scope The HKMA indicated that the "Hong Kong Classification Framework" is being developed in phases, aiming to establish a robust and transparent framework to define economic activities that contribute to green and sustainable development. The first phase of the "Hong Kong Classification Framework" will be released in May 2024, followed by a public consultation on the prototype of Phase 2A in September 2025, seeking opinions on expanding the scope of the classification framework and related optimization measures. The authority noted that during the consultation period, it received numerous submissions from various stakeholders, including banks, professional organizations, asset management companies, enterprises, non-governmental organizations, think tanks, and public institutions. Respondents generally welcomed the HKMA's efforts to enhance the clarity and practicality of the Hong Kong Classification Framework. The HKMA stated that it revised the prototype based on the feedback collected from the public consultation and officially released Phase 2A of the "Hong Kong Classification Framework." HKMA: Advancing the Next Phase of Work The HKMA stated that it will continue to update the "Hong Kong Classification Framework" and is implementing the next phase of promotion work, continuing to be guided by market development, public policy, industry priorities, and the latest technological advancements, while actively communicating with market participants and a wide range of stakeholders throughout the process