Climate Bonds brings to market five Sector Criteria for Certification under the Climate Bonds Standards in Thai language to scale up the local sustainable finance market in Thailand. These sectors are Agriculture, Bioenergy, Electric Grids, Hydropower and Transition.
The translation of the Climate Bonds Criteria were reviewed by UN Global Compact Network Thailand (GCNT) and the Securities and Exchange Commission of Thailand (SEC).
Download all Criteria in Thai below:
Electric Grids Criteria
The Thai Sustainable Finance Market
Thailand has been a leader in adopting best practices in ASEAN’s sustainable finance market with the development of a Strong regulatory landscape and pioneering issuances. We saw two Certified Climate Bonds issued by the Thai Public Debt Management Office, Ministry of Finance (PDMO) back in 2020, proceeds of which went towards low carbon infrastructure development. The country saw an increase in volume in the following year, becoming the second largest sustainable bond market in ASEAN with a total volume of USD8.3 billion.
Thailand is expected to announce its own green taxonomy soon, which has been developed with the technical expertise of Climate Bonds on behalf of the Working Group on Sustainable Finance (WG-SF), supported by the International Finance Corporation (IFC). Meanwhile, the country is looking at a potential of at least USD31.9 billion in green investments from infrastructure alone.
Zalina Shamsudin, Head of Asia-Pacific Programmes, Climate Bonds Initiative
"Thailand has been leading by example as to how governments can play a key role in enabling sustainable finance opportunities; that could mobilise private finance to support a transition towards a low-carbon economy. We are excited to see more governments take action in this manner."
Ruenvadee Suwanmongkol, Secretary-General, SEC Thailand
"The transition to a low-carbon future needs to be done now, and it requires significant financing and the greatest cooperation from us all. We hope that our full cooperation to translate Climate Bonds’ sector-specific standards into Thai language will not only provide clear eligibility criteria to assess and select eligible projects, but also foster the adoption of internationally science-based standards, which will help mitigate the greenwashing risk and increase the credibility of sustainable bonds. This will eventually facilitate access to sources of funds that allow the issuers to shift themselves and the country towards a decarbonisation pathway."
Thanyaporn Krichtitayawuth, Executive Director, UN Global Compact Network Thailand
"With the Climate Bonds’ partnership together, we agree that the Climate Bonds is working to provide this clarity through our criteria for both hard-to-abate sectors and entities focused on decarbonization. We will know how to facilitate the new projects to be greener, along with the climate bond taxonomy. The standard will help create ideas on how to make taxonomy operationalise."
The Last Word
Climate Bonds recently published the Scaling Credible Transition Finance in ASEAN, analysing the transition plans of ASEAN-based companies and providing good guidance around transition plans, the key tool to enable transformation of a credibly transitioning company.
As the overarching Climate Bonds Standard goes through the structural expansion of the Certification scheme beyond Use of Proceeds to assets, entities and sustainability-linked bonds for corporates, these sector criteria in Thai will facilitate the market access to key information for potential issuers who are keen to access sustainable investment and international best practice.
We are keen to see what is next for Thailand with hopes for a high volume of sustainable issuances throughout 2023 and beyond.
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