GIZ supports the initiation of Thailand Taxonomy Phase 2

- With the support from CCMB, Thailand has started the second phase of developing a classification system (Thailand Taxonomy) for industry, building & real estate, waste, and agriculture sectors to boost climate-friendly investments and strengthen climate-risk management in financial decision-making in the country.
- During the kick-off meeting, experts from over 30 institutions were present to discuss options for classifying green investments. Throughout this year, international and national experts are going to work together in four sectoral working groups to define technical screening criteria for approx. 30 economic activities.
- Taken together, Phase I (energy and transport) and II of the Thailand Taxonomy will cover more than 95% of Thailand’s greenhouse gas emissions.
Bangkok, 16 February 2024 – GIZ Thailand is supporting the launch of Thailand Taxonomy Phase 2 by jointly organising a meeting of the working group comprising the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), the Stock Exchange of Thailand (SET), and the Department of Climate Change and Environment (DCCE), together with 26 government and private sector organisations*.

The development of the Thailand Taxonomy aims to establish a standard to classify climate-friendly economic activities that are contextually appropriate at the local and international levels for both the private sector and the government. Furthermore, it serves as an instrument to promote capital allocation, strengthen private sector risk management, and shape investment strategies, as well as guide government policies and support measures to address global warming. The first phase of Thailand Taxonomy, published on 30 June 2023, focused on developing guidance for the climate change mitigation dimension of the energy and transportation sectors, which produce the highest greenhouse gas emissions in Thailand.

Thailand Taxonomy Phase 2 will expand its scope to cover other economic sectors with significant greenhouse gas emissions, including the manufacturing industry, the construction and real estate sector, the waste management sector, and the agriculture sector. Supported by the International Finance Corporation (IFC), the Asian Development Bank (ADB), and GIZ Thailand’s Climate Coastal and Marine Biodiversity (CCMB) Project, Taxonomy Phase 2 will be collaboratively developed by a consortium of consultants from the Climate Bonds Initiative (CBI), Det Norske Veritas (DNV), and the Thailand Development Research Institute (TDRI).

The working group will engage in discussions and solicit feedback from sector experts, including the Thai government, business, civil society, academia, the financial sector, and international organisations. A public consultation on the draft Thailand Taxonomy Phase 2 is expected to take place in the 4th quarter of 2024.
For more information, please visit https://www.bot.or.th/en/financial-innovation/sustainable-finance/green/Thailand-Taxonomy.html
* A list of the 26 organisations is given below
1) Greenhouse Gas Management Organization (Public Organization)
2) Department of Alternative Energy Development and Efficiency
3) Energy Regulatory Commission
4) Thai Industrial Standards Institute (TISI)
5) Department of Industrial Works
6) The Industrial Estate Authority of Thailand (I-EA-T)
7) Office of Agricultural Economics (OAE)
8) Department of Agriculture
9) Department of Rice
10) Royal Forest Department
11) Department of National Parks, Wildlife and Plant Conservation
12) Department of Livestock Development
13) Department of Fisheries
14) Department of Marine and Coastal Resources
15) Department of Public Works, Town and Country Planning (DPT)
16) Pollution Control Department
17) Department of Local Administration
18) Federation of Thai Industries (FTI)
19) Thai Renewable Energy Association (RE100)
20) Thai Chamber of Commerce
21) Thai Energy Service Companies Association (Thai ESCO)
22) Thai Condominium Association
23) Council of Engineers Thailand (COET)
24) Thai Bankers’ Association
25) Association of International Banks (AIB)
26) The Government Financial Institutions Association
About CCMB
The Climate, Coastal and Marine Biodiversity (CCMB) project is a bilateral cooperation programme between Thailand and Germany, with an implementation period from 2022-2027. The project’s objective is to support the design, development and implementation of overall climate and biodiversity policies and instruments in Thailand, as well as focusing on the marine, coastal and sustainable tourism sectors. CCMB highlights 4 key approaches in project implementation, namely: enhancing Capacity, fostering Collaboration, Mainstreaming of climate and biodiversity objectives, and Bridging to build expertise, enhance international partnership and create synergy.
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Tamara Kern
Advisor for the CCMB project
Email:tamara.kern(at)giz.de