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11 Nov 2025

Thai Economy

Stranded assets may cause a drag on Thailand reaching Net Zero and must be mitigated (Current Issue No.3621 Full Ed.)

คะแนนเฉลี่ย
  • In 2050, many carbon-emitting processes and technologies will lose their value and become stranded assets. Without significant measures to mitigate this issue, there is a risk that companies in Thailand will be required to write down the value of assets on their balance sheets and loan-to-value (LTV) ratios could fall below acceptable levels. 
  • According to the PDP 2024 plan, several fossil fuel power plants are expected to remain operational beyond 2050. These power plants will likely struggle to generate revenue due to zero-emission regulations, and have their valuations impacted. 
  • In the transport sector, battery electric vehicles (BEVs) currently account for only 1.2 percent of all vehicles in Thailand. Based on current projections, BEVs are unlikely to replace the existing stock of internal combustion engine (ICE) vehicles by 2050. 
  • The government must accelerate the introduction of Regulatory Sunset Clauses for high-GHG-emitting assets to help progressively distribute and reduce the risk over the long term, rather than causing a sudden and disruptive shift.

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Thai Economy