Developing Thailand Taxonomy is the first initiative among the five Key Strategic Initiatives (KSIs) to be driven by the Board according to the work plan under the framework of Sustainable Finance Initiative for Thailand that set the direction for driving sustainable finance across the financial sector. The Board, co-led by the BOT and the SEC, consists of relevant parties from the public and private sectors, as well as the financial institutions*. With the opening speeches delivered by Mr. Thalearngsak Petchsuwan, Deputy Permanent Secretary, Ministry of Natural Resources and Environment, Mr. Ronadol Numnonda, Deputy Governor Financial Institutions Stability, the BOT, and Ms. Jomkwan Kongsakul, Deputy Secretary-General, the SEC, the seminar included the presentation on “Getting to Know Taxonomy, A New Reference Tool for Sustainable Economy” by Ms. Ornsaran Manuamorn from the Climate Bonds Initiative (CBI).
Thailand Taxonomy Phase I focuses on the classification of economic activities relating to the energy and transportation sectors, which account for the highest proportion of greenhouse gas emissions. The Taxonomy will, in essence, standardize Thailand’s economic activities and will be used as benchmarks or assessment models for those climate-aligned activities’ objectives. It can also be used as an alternative credible reference for access to financial instruments and services that support transition activities towards climate resilience. In drafting the Taxonomy, the BOT and the SEC, have received, through public consultation, and taken into account useful comments and recommendations from various stakeholders, including the public and private sectors, civil society, academics, and international organizations.
In the seminar program, a panel discussion on “Thailand Taxonomy: New Tool, New Opportunities” moderated by Mr. Monchai Wongkittikraiwan, was also held, with the panelists from the public and private sectors, namely, Ms. Rosalind Amornpitakpun, Director of Climate Measure and Mechanism Subdivision, Climate Change Management and Coordination Division, Office of Natural Resources and Environmental Policy and Planning (ONEP), Ms. Sumon Sumetchoengprachya, Director of Low Carbon Policy and Technical Support Office, Thailand Greenhouse Gas Management Organization (Public Organization) (TGO), Ms. Jamjun Siriganjanavong, Executive Vice President, Head of Debt Capital Markets Department, the Krungsri Bank (Bank of Ayudhya PLC), Mr. Natee Sithiprasasana, Deputy Secretary-General of the Federation of Thai Industries (FTI), and Vice Chairman of the FTI's Renewable Energy Industry Club.
The panel participants shared their views on the role of Thailand Taxonomy, its usability and suggestions for future supporting and improvement measures. All relevant parties agreed that Thailand Taxonomy could be a credible reference tool for designing policies or strategies for access to green financing, appropriately managing risks and opportunities in relation to environment or climate changes, and maintaining competitiveness and potentials of businesses for long-term growth, domestically and internationally.
Thailand Taxonomy will also enhance the roles of financial sector, including the capital market, as the key component of capital formation and allocation, through development of products and services, to support the country’s economy towards sustainable goals.
The seminar can be viewed at the SEC Facebook page: https://www.facebook.com/sec.or.th/ Thailand Taxonomy Phase I and related documents can be downloaded at the BOT web site: https://www.bot.or.th/th/financial-innovation/sustainable-finance/green/Thailand-Taxonomy.html and the SEC web site: https://www.sec.or.th/TH/Pages/LawandRegulations/ResourceCenter-ThailandTaxonomy.aspx as well as other channels to be further notified.
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*Remark: The Thailand Taxonomy Board comprises 13 agencies as follows:
1. Bank of Thailand (BOT)
2. Securities and Exchange Commission (SEC)
3. Office of Natural Resources and Environmental Policy and Planning (ONEP)
4. Department of Alternative Energy Development and Efficiency (DEDE)
5. Energy Policy and Planning Office (EPPO)
6. Office of Transport and Traffic Policy and Planning (OTP)
7. Thailand Greenhouse Gas Management Organization (Public Organization) (TGO)
8. Thai Chamber of Commerce and Board of Trade of Thailand
9. Federation of Thai Industries (FTI)
10. Renewable Energy Industry Club, FTI
11. Thai Bankers’ Association (TBA)
12. Association of International Bank (Thailand) (AIB)
13. Government Financial Institutions Association (GFA)