“The release of the Hong Kong Taxonomy for Sustainable Finance marks a key milestone for Hong Kong’s sustainable finance landscape,” Eddie Yue Wai-man, CEO of HKMA, said in a statement on Friday.

“By providing a common language and framework for sustainable finance, we are equipping market participants with an important tool to make informed decisions, drive impactful cross-border investments and contribute to global efforts in combating climate change.”

The taxonomy covers 12 economic activities under four sectors: energy, transport, construction, and water and waste management.

Having a taxonomy is important to prevent “greenwashing”, the act of making unsubstantiated claims about the environmental benefits of a product or practice.

The HKMA plans to expand the taxonomy soon to cover other sectors like retail and services, said Arthur Yuen Kwok-hang, deputy CEO of HKMA, who added that the authority had received positive feedback following market consultations last May on preparing the taxonomy.

“We encourage the financial sector to use the taxonomy to assess the greenness of projects when they decide to make green loans to these companies,” Yuen said at a media briefing on Friday.

“A green taxonomy is an integral part of the green finance ecosystem. It enables investors to look for green investment opportunities and make informed decisions, thus easing the mainstreaming of sustainable finance flows.”

The taxonomy has adopted local elements such as listing out Hong Kong certifications and standards that could be used to prove the buildings or operations are environmentally friendly and also are in line with guidelines issued by mainland China and the EU.

“This will help companies operating in mainland China and Europe to consider borrowing green loans or raising green bonds in Hong Kong,” Yuen said, noting that Asia alone will require US$66 trillion in climate investments over the next 30 years.

“Addressing climate change requires the support of the financial industry, which in turn will bring about enormous opportunities,” he said. “Hong Kong, which is an international financial centre, is the ideal capital market to support these green financing activities.”

Investments on such a massive scale are needed to meet the global aim of containing global warming within 1.5 degrees Celsius of pre-industrial levels and avoid the worst effects of extreme climate events. Last year was the warmest year on record, according to the World Meteorological Organization.

“Extreme weather is clear evidence of accelerating climate change and a reminder for an urgent need for decarbonisation,” Yuen said.

02:01

What is climate finance, and why is it crucial to the global energy transition?

What is climate finance, and why is it crucial to the global energy transition?

Advertisement

The Hong Kong government’s decision to extend the US$100 billion Green and Sustainable Finance Grant Scheme for another three years will cover transition bonds and loans for companies to upgrade their equipment to save energy and cut down on pollution.

The move was announced by Financial Secretary Paul Chan Mo-po in his budget speech in February. The current scheme expires on May 10.

“The scheme will encourage more companies and industries in the region to make use of Hong Kong’s financing platform as they move towards decarbonisation,” Yuen said.

Separately, the HKMA will soon launch a cloud-based platform for banks to assess the potential impact of physical risks on residential and commercial buildings in Hong Kong under different climate scenarios, such as flooding and typhoons.

MILWAUKEE — Contractors, utilities and public officials this week had something to offer to local students interested in construction and science, technology, engineering and mathematics (STEM).

The construction labor shortage and age gap are continuing conversations in the industry and drives more contractors to find ways to add to the labor pool. In March, there were around 295,000 construction jobs open across the U.S, according to preliminary data from the U.S. Bureau of Labor Statistics. The median age in the construction field is 41.9, BLS data showed.

Meanwhile, different groups this week awarded scholarships, recognition and partnerships to schools and students interested in construction and STEM fields. One partnership between contractors and a school will create a new learning laboratory at a Wauwatosa high school, officials said. Here’s what groups did this week to support the next generation.

Plumbing and mechanical contractors partner with Wauwatosa schools

Wauwatosa East High School has partnered with mechanical contractors JM Brennan and TOTAL Mechanical, manufacturer representative Air Flow, the Milwaukee and Southeastern Wisconsin Plumbing and Mechanical Contractors Association and Sheetmetal and Air Conditioning Contractors Association to develop a learning laboratory to prepare the next building and construction trades labor force, officials said.

The partners will further develop the HVAC part of the technical training space at Wauwatosa East.

“At Tosa East we are very proud of our program,” said Craig Griffie, the technical education teacher at Wauwatosa East. “The students are building a really strong foundation and it’s all due to the partners we have.”

State awards “fab lab” grants to 18 school districts

Gov. Tony Evers and Missy Hughes, secretary of the Wisconsin Economic Development Corp., awarded $493,000 in “fab lab” grants to 18 school districts to train students in science, technology, engineering, arts and mathematics. The money is used to help create fabrication labs at local schools and equip them with computerized manufacturing machines such as 3D printers and laser engravers.

Lawmakers recognize national construction contest winners

State Rep. Clint Moses and Brian Westrate, staff for U.S. Representative Derrick Van Orden, recognized the University of Wisconsin-Stout construction team, faculty and staff. The team clinched a gold medal in estimating at the Associated Builders and Contractors National Craft Competition held this year in Kissimmee, Florida.

Madison utility awards high school scholarships

Madison-based Alliant Energy awarded scholarships worth $1,000 to 25 high school seniors in Iowa and Wisconsin. The scholarships are awarded to students who perform community service work, academic achievement and wrote an essay about community problems solved through science, technology, engineering or mathematical concepts.

Julie Bauer, executive director of the Alliant Energy Foundation, said “supporting workforce readiness and fostering young minds interested in STEM-based careers is critical to developing the future of a skilled and innovative workforce.”