United Hong Kong Fund Initiative: Promoting Green Finance Development starting from businesses and banks.

The director of the Hong Kong Unity Fund for Green and Sustainable Development, Xiao Yiju, welcomed the official launch of the second phase of the Hong Kong Sustainable Finance Taxonomy by the Hong Kong Monetary Authority. This update covers transition activities, manufacturing, and information and communication technology industries, which align with the foundation's consistent advocacy. At a time when the United States has once again withdrawn from the Paris Agreement and the European Union has relaxed some regulations through the Omnibus, Hong Kong's actions highlight the firm commitment of the local community to promote the development of green finance. Xiao Yiju pointed out that as the taxonomy scope expands, the Hong Kong government needs to actively address the issue of its low actual utilization rate. He suggested starting from both the corporate and banking sectors. On one hand, regulatory agencies should jointly organize training and workshops with industry associations to help companies understand the technical details and certification requirements of the taxonomy, enhancing their ability to meet the standards. On the other hand, to meet the Hong Kong Monetary Authority's target that all banks must achieve net zero emissions financing by 2050 or earlier, the authorities may consider requiring banks to allocate a portion of their financing portfolios to activities that comply with the taxonomy, gradually guiding banks to meet the standards. If the Hong Kong government takes more proactive measures, it can provide interest subsidies to activities that comply with the taxonomy, encouraging banks and companies to more widely apply for them. Xiao Yiju also added that in the long term, the Hong Kong government can refer to the experience of the European Union and gradually require large listed companies to disclose the proportion of their revenue that complies with the Hong Kong Sustainable Finance Taxonomy, allowing investors to have a more comprehensive understanding of the company's "green level". This not only helps strengthen green information disclosure and transparency but also reduces the risk of "greenwashing" and aligns with international trends.