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Thailand launches Taxonomy: A Reference Tool for Sustainable Economy

Oct 13, 2023 – The Bank of Thailand launched Thailand Taxonomy on July 5, 2023.

The Taxonomy: A Reference Tool for Sustainable Economy is a result of Phase 1 of the taxonomy development co-led by the Bank of Thailand and the Securities and Exchange Commission. Thai Bankers Association, an SBFN member since 2012, also contributed to the development.

Taxonomy provides a common framework for classifying economic activities to gather investment information and mobilize green finance. Following good international practice, the Taxonomy is aligned with the principles of the Paris Agreement and Sustainable Development Goals. The primary focus of the Taxonomy is to define activities that reduce greenhouse gas (GHG) emissions to achieve climate change mitigation of objectives of the country.

The Taxonomy uses a traffic light system to classify economic activities as green, excluded (red), or transitional (amber). To promote greater alignment with global and regional markets, Thailand Taxonomy is aligned with the EU and ASEAN taxonomies.

In this phase of the development, the Taxonomy focuses on two key sectors: energy and transportation.

“I would like to congratulate Thailand on this important step. Taxonomies have been found to be an important instrument in supporting transition to low carbon economies globally and in emerging markets. SBFN has been providing ample opportunities to its members to learn about good international practice with regards to taxonomies and our upcoming Taxonomy Toolkit will offer an additional guidance in this respect”, said Rong Zhang, SBFN Global Coordinator.