Thailand Taxonomy: A Reference Tool for Sustainable Economy

Thailand Taxonomy

Driving the Thai Economy Towards Sustainability

"The BOT hopes to see a greater adoption and utilization of the Thailand Taxonomy, which will serve as a building block that fosters Thailand's transition toward environmental sustainabilit."

For the financial sector, Taxonomy will enable financial institutions to better assess the environmental status of their clients, allowing them to offer the appropriate financial products. The BOT hopes to see a greater adoption and utilization of the Thailand Taxonomy, which will serve as a building block that fosters Thailand's transition toward environmental sustainabilit.

Dr. Roong Mallikamas

Deputy Governor Financial Institutions Stability

Opening speech in the seminar clip "Thailand Taxonomy 2.0: Driving the Thai Economy Towards Sustainability"

27 May 2025

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 (except Agricutural sector use the practice-based), 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, sponsored by International Finance Corporation (IFC), Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), and Asian Development Bank (ADB), In addition, there are domestic and international consultants, which are Climate Bonds Initiative (CBI), DNV, the Creagy, Carbon Institute for Sustainability (CBiS) and TDRI.

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 or Transitional 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 at 2040. Furthermore, Thailand’s national decarbonisation strategies and Nationally Determined Contribution (NDC) were taken into account when developing criteria for this category.

Red

Red activities are activities that currently not compatible with net-zero trajectory and are not going to become compatible anytime soon. These activities should therefore be phased out.