HKMA updates the Green and Sustainable Finance (GSF) Grant Scheme (released on 14 April 2026)

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The Hong Kong Monetary Authority (HKMA) announced updates to the Green and Sustainable Finance (GSF) Grant Scheme on 14 April 2026, further refining the relevant measures to support the development of green, sustainable and transition finance in Hong Kong, while strengthening alignment with the latest Hong Kong Taxonomy for Sustainable Finance.

Reference: HKMA’s Tax Concessions and Incentive Schemes Green and Sustainable Finance Grant Scheme

For eligible green and sustainable bond and loan issuances in Hong Kong with an issuance size of at least HK$100 million (or its foreign-currency equivalent), the subsidy arrangement for external review costs has been updated as follows:

Bonds and loans issued before 24 April 2026

• External review costs will be subsidised up to 75%.
• For post-issuance external review services submitted on or after 24 April 2026, the 75% cap will also apply.
• For example, a sustainability-linked loan issued before 24 April 2026 that undergoing post-issuance external review after this date will remain eligible for a subsidy of up to 75%.

Bonds and loans issued on or after 24 April 2026

• If the issuance is aligned with the Hong Kong Taxonomy for Sustainable Finance, external review expenses will be subsidised up to 75%.
• If the issuance is not aligned with the Hong Kong Taxonomy for Sustainable Finance, the subsidy will be capped at 50%.

Expanded scope of eligible pre-issuance expenses

In addition to the changes to external review subsidies, the updated GSF Grant Scheme expands the scope of eligible pre-issuance expenses for bonds and loans issued on or after 24 April 2026.

Newly eligible costs include:

• Advisory services provided by recognised sustainability advisors
• Development of green and sustainable finance frameworks, including transition plans
• Similar to external review subsidies:
  • Advisory costs will be subsidised at up to 75% if aligned with the Hong Kong Taxonomy for Sustainable Finance
  • Otherwise, subsidies will be capped at 50%

This expansion provides issuers with greater financial support to strengthen the credibility, structure, and regulatory alignment of their sustainable finance instruments.

As a Recognised External Reviewer under the GSF Grant Scheme, we provide independent external review and verification services for:

• Green, social, sustainable and sustainability‑linked loans/bonds
• Green and sustainability‑linked loans/bonds
• Post‑issuance verification and ongoing compliance reviews

Our external review services are aligned with HKMA requirements, international best practices, and recognised standards, supporting issuers in maximising GSF grant eligibility while enhancing transparency and market confidence.

We are also a Recognised Sustainability Advisor under the GSF Grant Scheme, providing pre‑issuance advisory services that now qualify for grant subsidies.

Our advisory support includes:

• Development of green and sustainable finance frameworks
• Advisory on transition finance strategies and transition plans
• Alignment with the Hong Kong Taxonomy for Sustainable Finance
• Gap analysis against local and international sustainable finance standards

As a Recognised External Reviewer and Recognised Sustainability Advisor under the GSF Grant Scheme, SGS leverages our global network of specialists to support clients in meeting both local and international sustainable finance standards.

In light of the latest HKMA updates, we are well positioned to help issuers:

• Navigate revised GSF Grant Scheme requirements
• Optimise subsidy eligibility under the Hong Kong Taxonomy
• Implement credible, compliant and market‑aligned green and sustainable finance solutions

To learn more about how the updated HKMA GSF Grant Scheme may impact your green or sustainable bond or loan issuance, or to explore how we can support you as a Recognised External Reviewer and Sustainability Advisor, contact our sustainable finance experts.

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