30 November 2024 – The Department of Climate Change and Environment (DCCE), the Bank of Thailand (BOT), the Security Exchange Commission (SEC) and the Stock Exchange of Thailand (SET) held a series of virtual public hearing sessions on the Thailand Taxonomy Phase II between 5 and 16 November 2024. The draft Taxonomy is open for comments from the public until 10 January 2025 and can be accessed here.

A taxonomy is a guidance instrument for investment decision-making. By defining criteria for what qualifies as a climate-friendly investment, taxonomies can enhance climate finance, facilitating a transition away from fossil fuels and promoting climate-resilient development. In 2023, the first phase of a Thailand Taxonomy was introduced, establishing criteria for climate-friendly investments in the energy and transport sectors. In the hearings between 5 – 16 November, nearly 1,000 interested stakeholders gained insights into the proposed green criteria for the following sectors:

• Agriculture: sustainable crop growing practices, forestry management, livestock and aquaculture
• Manufacturing: low-emission manufacturing of chemicals, cement, iron and steel, aluminium, hydrogen as well as enabling activities for a low-carbon transition (e.g. batteries, low-carbon technologies)
• Building and Real estate: low-emission of new buildings and renovation of buildings to reduce their carbon footprint
• Waste management: recycling, waste water management and waste-to-energy

The consultation with the Thai public is the last step before finalising and launching the extended Taxonomy in March 2025.

With a comprehensive Taxonomy set up, Thailand follows a global trend in steering investments towards low-carbon and climate-resilient activities. According to data from the Sustainable Banking and Finance Network (SBFN), nearly 50 sustainable finance taxonomies are in place around the globe. While taxonomies have become a widely acknowledged tool for shifting capital flows, their implementation still lags in many countries. Limited capacities and knowledge, scattered regulations and data gaps hamper the application. By embedding the Thailand Taxonomy in the draft Climate Change Act, Thailand has already set a strong signal towards its implementation. Building up skills and expertise of relevant stakeholders as well as developing financing instruments that align with low-carbon and climate-resilience criteria will be a key next step once the Phase-II-Taxonomy is launched.

The development of the Thailand Taxonomy Phase II is supported by the Asian Development Bank (ADB), the International Finance Corporation (IFC), and GIZ Thailand via the Climate, Coastal and Marine Biodiversity (CCMB) project, and developed collaboratively by a consortium of the Green Bonds Initiative (CBI), Det Norske Veritas (DNV), and the Thai Development Research Institute (TDRI).