25 Dec. 2022 | Public Hearing - Thailand Taxonomy Phase 1
Draft Thailand Taxonomy Phase 1 was launched by Thailand Taxonomy Board for public consultation between 26 December 2022 and 26 January 2023.
The Future of Thai Finance
Thailand Taxonomy
A Reference Tool for Sustainable Economy
Summary
- Thailand Taxonomy;
- is a reference tool for economic activities according to environmental objectives,
- is transparent, grounded in the latest climate science aligned with the goal of reaching net-zero emissions by 2050 as prescribed by the relevant Paris agreement that that keep warming below 1.5°C,
- employs a so-called traffic light system, that distinguishes between green, amber (transitional), and red activities, and compliance with the Do No Significant Harm (DNSH) and Minimum Social Safeguards (MSS),
- uses as a common reference on a voluntary basis.
- Thailand Taxonomy Board is established to develop Thailand Taxonomy, a classification system of economic activities deemed as environmentally-sustainable. The Board comprises agencies from both the public and private sectors, with sponsored by International Finance Corporation (IFC), and Climate Bonds Initiative (CBI) as a consultant.
Traffic-Light System
Green
Green activities are activities that substantially contributing to the goal of climate change at or close to the net-zero by 2050 and in line with the Paris Agreement goals that keep warming below 1.5°C.
Amber
Amber activities are activities that have not yet reached net zero emission but can still be improved with a reliable decarbonization pathways and prescribed sunset dates. For Thailand Taxonomy, the pathways are taking the national context (Nationally Determined Contribution: NDC) into account.
Red
Red activities are activities that not in green or amber category, and harmful to the goal of decarbonization.
Timeline
2022
Feedback Summary (TH)
2023
30 Jun. 2023 | Thailand Taxonomy Phase 1
Thailand Taxonomy Phase 1 is focused on two sectors: energy and transportation - Jun. 2023
..
5 Jul. 2023 | Thailand Taxonomy Seminar: A Reference Tool for Sustainable Economy
at Siam Kempinski Hotel Bangkok.
In Progress
Thailand Taxonomy ระยะที่ 2
Thailand Taxonomy Phase 2 will be focused on Manufacturing sector, Agriculture sector, Real estate and Construction sector, and Waste Management sector.
Thailand Taxonomy Phase 1
Download PDFThe Thailand Taxonomy Board is established to develop Thailand Taxonomy, a classification system of economic activities deemed as environmentally-sustainable. The Board comprises agencies from both the public and private sectors to ensure all sectors’ views are reflected. In the initial phase, the list of agencies is as follows:
(1) Bank of Thailand (BOT)*
(2) The Securities and Exchange Commission, Thailand (SEC)*
(3) Office of Natural Resources and Environmental Policy and Planning (ONEP),
Ministry of Natural Resource and Environment
(4) Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy
(5) Energy Policy and Planning Office (EPPO), Ministry of Energy
(6) Office of Transport and Traffic Policy and Planning (OTP), Ministry of Transport
(7) Thailand Greenhouse Gas Management Organization (Public Organization) (TGO)
(8) Federation of Thai Industries (FTI)
(9) Renewable Energy Industry Club, Federation of Thai Industries (RE-FTI)
(10) Thai Chamber of Commerce and Board of Trade of Thailand
(11) The Thai Bankers' Association (TBA)
(12) Association of International Bank (Thailand) (AIB)
(13) Government Financial Institutions Association (GFA)
*The BOT and SEC are representatives of the Working Group on Sustainable Finance (WG-SF), in collaboration with the Fiscal Policy Office (FPO), the Office of Insurance Commission (OIC), and the Stock Exchange of Thailand (SET).
Environmental objectives
Thailand Taxonomy phase 1 will initiate climate change mitigation, however, the activity must not cause damage to other objectives (Do No Significant Harm)
Sector
Thailand Taxonomy phase 1 will cover energy and transportation sector because these sectors account for a significant share of the country’s GHG emissions and high energy intensity use. There are 23 energy and transporatation activities with screening criteria and thresholds in this current.