Hong Kong Taxonomy for Sustainable Finance

Hong Kong Taxonomy for Sustainable
Finance
Supported by
May 2024

Contents
1. Introduction .................................................................................................................................... 3
1.1. The need for developing a taxonomy for Hong Kong ............................................................. 3
1.2. Core principles ........................................................................................................................ 4
1.3. Alignment of the Hong Kong Taxonomy ................................................................................. 5
2. Taxonomy spreadsheet ................................................................................................................... 6
2.1. Prototype spreadsheet ........................................................................................................... 7
3. Sectors in the Hong Kong Taxonomy ............................................................................................ 16
3.1. Sector: Electricity, Gas, Steam and Air Conditioning Supply ................................................ 18
3.1.1. Electric power generation, transmission and distribution .............................................. 18
3.2. Sector: Transportation and Storage ...................................................................................... 22
3.2.1. Land transport including railways ................................................................................... 22
3.2.2. Water Transport .............................................................................................................. 26
3.3. Sector: Water Supply; Sewerage, Waste Management and Remediation Activities ........... 31
3.3.1. Sewage sludge treatment ............................................................................................... 31
3.3.2. Waste Collection, Treatment and Recycling ................................................................... 33
3.4. Sector: Construction ............................................................................................................. 38
3.4.1. Construction and renovation of buildings ....................................................................... 38
Annex 1: List of Abbreviations .............................................................................................................. 46
2

1. Introduction
1.1. The need for developing a taxonomy for Hong Kong
Climate change is one of the most pressing global issues. Its impact on the planet can be felt in the
form of rising temperatures, melting glaciers, rising sea levels, and more frequent natural disasters.
The continued burning of fossil fuels and other human activities are causing greenhouse gas (GHG)
emissions, trapping heat in the atmosphere and aggravating the issue. Asia is one of the places most
vulnerable to climate change as the region is experiencing changes in rainfall patterns, rising sea levels,
and more frequent extreme weather events, such as typhoons and floods. These events can lead to
crop failures, water scarcity, and infrastructure damage, which can have a significant impact on the
region's economies. Moreover, the low-lying landscape makes this region particularly vulnerable to
rising sea levels.
Hong Kong is no exception. According to the Hong Kong Observatory, temperature increased at a rate
of 0.28℃ per decade during 1993-20221 whilst, on average, the mean sea level at Victoria Harbour
rose at a rate of 32 millimetres per decade during 1954-20222. In addition, in recent years Hong Kong
is experiencing more frequent and intense weather events, such as typhoons and heavy rainfalls.
These events disrupt the city's transportation and cause damages to infrastructure, affecting business
operation and daily lives of peoples.
In an effort to combat climate change, 196 Parties at the United Nations (UN) Climate Change
Conference adopted the Paris Agreement in 20153. As part of China, the Hong Kong Special
Administrative Region has the duty to make its contribution in order to achieve the goals of the Paris
Agreement. In 2021, the Government announced the “Hong Kong's Climate Action Plan 2050”, which
set out four major decarbonisation strategies to allow it to achieve carbon neutrality before 2050: the
“net-zero electricity generation”, “energy saving and green buildings”, “green transport” and “waste
reduction”. To support the global action on climate change, the financial sector has a key role to play.