Hong Kong Climate Finance Disclosures Could Tighten for Banks

Hong Kong climate finance disclosures could become more extensive as the city’s financial regulator expands its framework for funding projects designed to reduce emissions and protect against climate risks.

The Hong Kong Monetary Authority plans to survey banks in 2027 on their use of its sustainable finance taxonomy, with the findings potentially influencing future supervisory requirements, HKMA executive director Donald Chen said.

The regulator earlier this month proposed expanding the two-year-old taxonomy to include shoreline protection and flood management alongside additional activities and technical criteria for green and transition projects.

The taxonomy covers six adaptation sectors, including energy, transport and buildings.

Hong Kong-domiciled entities have issued around USD150bn of labelled debt since 2020, according to Bloomberg Intelligence.

Stronger disclosure requirements could increase transparency over how banks classify and finance green, transition and climate-adaptation projects as Hong Kong develops its sustainable finance market.