Thailand Publishes Sustainable Finance Taxonomy

The Bank of Thailand (BOT) and the country’s Securities and Exchange Commission (SEC) have released the Thailand Taxonomy Phase I, a sustainable finance document that outlines a business guide, case studies and FAQs. Thailand Taxonomy Phase I is the country’s pilot version of a sustainable finance taxonomy. The BOT and SEC issued a consultation on the taxonomy which ran from 26 December to 26 January, with the two regulators acting as co-leads of the Thailand Taxonomy Board. The taxonomy consultation was an extension of work carried out by Thailand’s Working Group on Sustainable Finance, which had set out five strategic initiatives to promote sustainable finance across the financial sector, including developing a sustainable finance taxonomy. BOT and SEC said it expects stakeholders to adopt the taxonomy as a reference tool for making policy or strategy, accessing green funding, and managing opportunities and risks relating to the environment and climate change scenarios. The Thailand Taxonomy Phase I document specifically provides a guide for assessing the alignment of entities with the existing taxonomy. For instance, it establishes a process for categorising individual activities as green, amber, red, or out-of-scope, based on their adherence to relevant metrics and thresholds outlined in the taxonomy. 

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