Unlocking New Opportunities: Hong Kong Expands Green and Sustainable Finance Incentives and Launches

On 3 May 2024, the Hong Kong Monetary Authority (“HKMA”) published its updated guideline on the Green and Sustainable Finance Grant Scheme (the “2024 GSF Grant Scheme”). The Green and Sustainable Finance Grant Scheme was first introduced by the HKMA in May 2021 and has since provided subsidies to eligible bond issuers and loan borrowers for the issuance of more than 340 green and sustainable debt instruments in Hong Kong totalling approximately US$100 billion. In addition, the HKMA published the Hong Kong Taxonomy for Sustainable Finance (the “Taxonomy for Sustainable Finance”) on 3 May 2024, the aim of which is to provide a standardised framework for classifying and labelling financial products and investments based on their environmental sustainability. 

This bulletin summarises the key details of the 2024 GSF Grant Scheme, including certain differences compared to the 2021 GSF Grant Scheme, and discusses the new Taxonomy for Sustainable Finance and its relevance to Hong Kong companies.