The Bank of Thailand (BOT) and Securities and Exchange Commission (SEC) have issued a consultation on a pilot version of a sustainable finance taxonomy. The taxonomy aims to establish a common investment language for the sustainable finance market in Thailand, as well as help to accelerate its development, facilitate the creation of innovative products and services like green bonds, loans and index-linked services and help develop a broader sustainable finance ecosystem in the country. Like the ASEAN Taxonomy, the Thailand Taxonomy uses a traffic light system, with the objectives of the taxonomy largely drawn from the EU taxonomy. The EU taxonomy most closely aligns with the environment-related goals in Thailand’s National Strategy for 2018-2037, including climate change mitigation, climate change adaptation, the protection and restoration of biodiversity and ecosystems, as well as pollution prevention and control. The pilot taxonomy initially focuses on developing screening criteria and thresholds for the climate change mitigation objective, while future versions of the taxonomy will cover the other environmental objectives. The pilot taxonomy is limited in scope to two sectors – energy and transportation – as they account for a significant share of Thailand’s GHG emissions and high energy intensity use. Other sectors will be covered in future versions of the taxonomy. The consultation will remain open until 26 January.
— Regulation Asia (@RegulationAsia) January 3, 2023