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5 Jul 2023


Thailand Taxonomy…Stringent criteria to achieve net zero goal and resulting challenges for the nation’s transport and energy sectors (Current Issue No.3420 Full Ed.)


        Phase one of Thailand taxonomy, classification standards for economic activities deemed environmentally sustainable, was implemented on June 30, 2023. The effort is to develop a definition and criteria for environmentally friendly projects, as well as a reference tool for investment assessment and support for green businesses. In the initial phase, the taxonomy will focus on the transport and energy sectors, which are responsible for nearly 70 percent of the total greenhouse gas (GHG) emissions in Thailand each year. In the next phase, its scope would be expanded to cover other sectors.

        The stringent criteria are aimed at contributing to the global effort to transition to net zero emissions by 2050. This includes required standards for green vehicles, support for clean energy power plants, and inclusion of investment in new fossil power plants as a red activity.

        However, within the context of Thailand, the pace of business adaptation may not be as fast as expected, especially in the near term. Regarding the transportation sector, the transition to electric vehicles (EVs) still faces multiple challenges, while goods transport is not fully prepared. As for the energy sector, the government has introduced measures aimed at promoting electricity generation from renewable energy while cutting down on the use of fossil fuels. However, limitations on the various types of renewable energy and increased electricity demand pose difficulty for any potential shift from fossil fuels.

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