BANGKOK (NNT) – The Bank of Thailand (BoT) has teamed up with six of the country’s largest banks to create a comprehensive sustainability transition strategy.
The move is expected to reduce greenhouse gas emissions in key economic sectors by assisting businesses with loans from these banks in cutting their emissions. The BoT’s target is to achieve emission reductions in at least one major sector by the end of 2025.
Ronadol Numnonda, Deputy Governor for Financial Institution Stability at the BoT, emphasized the importance of fostering a green ecosystem within the financial industry. Since February 2023, the BoT has encouraged banks to integrate environmental factors into their lending and investment practices. This effort aligns with Thailand’s goal of achieving net-zero emissions by 2065, a timeline that reflects the country’s economic reliance on fossil fuels. The global target is 2050.
The participating banks are developing transition finance products to help businesses move away from carbon-intensive operations. These financial tools will support companies in adopting renewable energy, improving energy efficiency, and lowering emissions, with a particular focus on high-emission sectors such as manufacturing and agriculture.
The BoT is also collaborating with banks to offer customized financial solutions for small and medium-sized enterprises (SMEs). SMEs often face more challenges in transitioning to sustainable practices compared to larger firms. These solutions include reduced interest rates and specialized loan products tailored to the unique needs of SMEs in climate-vulnerable sectors.
Source: NNT
