Representatives from the steering committee, funders and consultants joined the Thailand Taxonomy launch event on Tuesday 27 May 2025

On 27 May 2025, Thailand Taxonomy Phase II was officially launched and provides guidelines for low-carbon investments in the agriculture, construction and real estate, manufacturing, and waste management sectors. The thresholds for activities developed are based on the 1.5° C pathway – meaning that all sectors must move to net-zero by 2050.

Over 300 people attended the launch event in person, while many others watched the livestream via the steering committee’s Facebook page

The taxonomy classifies economic activities into three categories like traffic lights: green (climate-friendly), amber (transitional) and red (stop) categories. For example, the manufacturing of rechargeable batteries and accumulators is classified as ‘green’ because batteries are critical for the energy transition. By contrast, the manufacturing of petrol-driven cars is classified as ‘red’ because internal combustion engine cars need to be replaced by electric vehicles to decarbonise the transport sector. Finally, ‘amber’ or transitional activities are activities that need to be phased out by the sunset date of 2040. To illustrate: the renovation of buildings that will result in a reduction of 20-30% emissions is considered amber, however after 2040, renovations will need to comply with green building standards.

The development of a taxonomy was defined as one of five key strategic initiatives in the ‘Sustainable Finance Initiatives’ by the Thai Working Group on Sustainable Finance back in 2021. The aim is to advance the role of the financial sector in supporting the sustainable, low-carbon, and climate-resilient transformation of the economy.

Panel discussion on how the Thailand Taxonomy can help promote Thailand’s green economy. (From left to right) Monwikan Kajohnboon (Thai Cement Association), Visarut Methasit (Department of Alternative Energy Development and Efficiency), Dr Kittisak Prukkanone (Department of Climate Change and Environment), Rong Zhang (International Finance Corporation). The session was moderated by Dr Ornsaran Manuamorn from the World Bank.

As a first step, Thailand published the first phase of the Taxonomy in 2023, covering the energy and transport sector. The addition of four more sectors ensures that the Taxonomy provides investment guidance for 97% of Thailand’s greenhouse gas emitting activities.

Thailand Taxonomy Phase II is a joint effort by the Bank of Thailand, Department of Climate Change and Environment, Securities and Exchange Commission, and Stock Exchange of Thailand. It was developed with the support from the International Financial Corporation, Asian Development Bank, and GIZ.

The launching of Thailand Taxonomy Phase II in May marks a promising beginning for Thailand towards green transition. The implementation of Taxonomy, however, remains a challenge, requires capacity development, and needs to be addressed together among financial regulators, climate policy makers, and the private sector.