Thailand: Green Infrastructure Investment Opportunities for Green Bonds, Loans & Sukuk
Climate Bonds continues its series on sustainable investment opportunities across the globe
The new Climate Bonds Initiative report, produced in collaboration with the Asian Development Bank (ADB), Thailand’s Securities and Exchange Commission (SEC) and Public Debt Management Office (PDMO) under the Ministry of Finance analyses green financing options to develop key low-carbon infrastructure in the country.
BANGKOK/LONDON: 28/01/2022, 11:00 (GMT+7): The Climate Bonds Initiative has released the Green Infrastructure Investment Opportunities Thailand (Thai GIIO) report, which identifies and analyses green infrastructure projects open for potential investment and highlights avenues for further pipeline development.
The Thai GIIO report has been produced with the support of the Asian Development Bank (ADB) and the ADB-managed ASEAN Catalytic Green Finance Facility (ACGF), the Thailand Securities and Exchange Commission (SEC) and the Public Debt Management Office (PDMO), Thailand Ministry of Finance.
The report showcases 17 green projects in renewable energy, low carbon transport, water infrastructure and waste management. A sample pipeline of approximately 40 projects is also identified across various sectors, including low-carbon transport, renewable energy, and sustainable water and waste management.
According to the report, Thailand’s latent potential for green infrastructure investment currently amounts to at least USD31.9 billion equivalent.
The report has been prepared to help meet the growing demand for green investment opportunities and to support the transition to a low carbon economy. It aims to support Thailand’s economic and green post-COVID-19 recovery goals by stimulating engagement around the financing of climate resilient infrastructure, in particular between project owners, developers, and financiers.
Key topics covered in the Thai GIIO Report include:
- Thailand’s promising position to mobilise funding from the capital markets to narrow down the financing gaps in green infrastructure;
- The development of a broad spectrum of green financing options in Thailand;
- Current trends in and policy support for domestic green, social, sustainability bonds and sustainability-labelled bonds (SLB) assessed against a global backdrop;
- Potential for the use of Transition bonds to finance the decarbonisation of hard-to-abate sectors; and
- The role of trading venues and the banking sector in promoting green regulatory frameworks.
Download the report here.
Anouj Mehta, ADB Thailand Country Director and Unit Head of the ACGF:
“As devastating as the global health crisis has been and still is to the region and the world, now is the time to stand ground on our commitments to the nationally determined contributions and the Paris Agreement. The Government of Thailand has already proven their unwavering resolve to reducing emissions through 2020’s sovereign sustainability bonds, the first such bond in the region which was oversubscribed three times. The Thai GIIO report shows just how ready the country is for investments in green infrastructure.”
Patricia Mongkhonvanit, Director, General of Public Debt Management Office:
"The Public Debt Management Office (PDMO) launched the Kingdom of Thailand’s inaugural sustainability bond in 2020 to promote growth of ESG bond market in Thailand and we pleased to see that it has been very active and has grown rapidly in recent year with issuances from both public and private sectors. Also, we expect that the market will continue its strong growth going into the future."
Ruenvadee Suwanmongkol, Secretary-General, The Securities and Exchange Commission, Thailand:
“SEC Thailand has been committed to develop the eco-system for sustainable finance to support the acceleration of capital flows towards green infrastructure. These green investments will not only lay down the foundation for achieving the vision of Thailand’s new economic model, BCG (Bio Economy, Circular Economy and Green Economy), and Thailand’s net zero target, but also reaffirm our commitment to the United Nations’ 2030 Agenda for Sustainable Development and the Paris Agreement.”
Sean Kidney, CEO, Climate Bonds Initiative:
“The Thai government’s issuance of sustainability bonds in 2020 acknowledged the crucial role green finance will play in the future of low-carbon infrastructure investment. The shift to a green economy is a gallant mission and offers up huge opportunities for investors to take part. This Report is a ready guide for closing the region’s infrastructure gap and catalysing climate conscious ventures.”
The Thailand GIIO report is available for download here.
For more information, please contact:
Climate Bonds Initiative:
Head of Regional Communications
+55 (61) 98135 1800 (WeChat/Whatsapp)
ASEAN Programme Analyst
Thailand Country Director and Unit Head of the ACGF
Notes for journalists:
About the GIIO series: Green infrastructure presents a huge investment opportunity globally, with an estimated USD100tn worth of climate compatible infrastructure required between now and 2030 in order to meet Paris Agreement emissions reduction targets. However, there remains a lack of identifiable, investment-ready and bankable projects. There is also a lack of understanding of what types of assets and projects qualify for green financing. Climate Bonds is developing a series of reports that aim to identify and demonstrate green infrastructure investment opportunities around the world, raising awareness of what is green and where to invest, and to promote green bond issuance as a tool to finance green infrastructure.
The full series of GIIO reports can be found here.
About the Climate Bonds Initiative: The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low carbon economy. Climate Bonds undertakes advocacy and outreach to inform and stimulate the market, provides policy models and government advice, market data and analysis, and administers an international Standard & Certification Scheme for best practice in green bonds issuance. For more information, please visit www.climatebonds.net.
About the Asian Development Bank: ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members —49 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.
About the ASEAN Catalytic Green Finance Facility: The ASEAN Catalytic Green Finance Facility (ACGF) is an innovative finance facility under the ASEAN Infrastructure Fund dedicated to accelerating green infrastructure investments in Southeast Asia. It supports ASEAN governments to prepare and source public and private financing for infrastructure projects that promote environmental sustainability and contribute to climate change goals. The ACGF is owned by the 10 ASEAN member states and ADB, which also administers the facility.
About PDMO/Thailand SEC: Established in 1992 by virtue of the Securities and Exchange Act B.E. 2535 (1992), the Securities and Exchange Commission, Thailand regulates and supervises the capital market business with the mission “To assure a conducive environment for a fair, efficient, dynamic and inclusive capital market." One of the objectives of the SEC Strategic Plan is to provide a mechanism for companies to embed ESG issues into their business operation and disclose information based on standards and drive capital allocation to economic activities considering social, environmental, and governance aspects. For more information, please visit www.sec.or.th