The Bank of Thailand recently launched The Taxonomy: A Reference Tool for Sustainable Economy, which 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, a Sustainable Banking and Finance Network (SBFN) member since 2012, also contributed to the development.
The taxonomy provides a common framework for classifying economic activities to gather investment information and mobilize green finance. Following good international practice, it 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 objectives of the country.
The Taxonomy uses a traffic light system to classify economic activities as green, excluded (red), or transitional (amber). Thailand Taxonomy is aligned with the EU and ASEAN taxonomies to promote greater alignment with global and regional markets. In this development phase, the Taxonomy focuses on two key sectors: energy and transportation.
Taxonomies are an important instrument in supporting the transition to low-carbon economies globally and in emerging markets. SBFN has been providing ample opportunities to its members to learn about good international practices regarding taxonomies and our upcoming Taxonomy Toolkit will offer additional guidance in this respect”, said Rong Zhang, SBFN Global Coordinator.
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