Currently, the world is focused on conducting business in an environmentally sustainable manner, aiming to reduce greenhouse gas emissions (Net Zero Emissions) and emphasize green finance. Green finance involves increasing financial flows from banking, microcredit, insurance, and public and private investments into business activities that prioritize sustainable development. The key is to better manage environmental and social risks while seizing opportunities to generate returns and benefits for the environment, leading to more responsible business operations. While green finance is relatively new to Thailand, it is a global issue that has been ongoing for some time, demonstrating that the financial sector can play a crucial role in addressing climate change. Collaboration must be fostered across all sectors, including public institutions, regulatory agencies, financial markets, and the private sector, to establish common standards aimed at achieving Net Zero carbon dioxide emissions by 2050, with green finance serving as a crucial instrument (Source: National Innovation Agency (Public Organization)).
The term 'taxonomy' has been widely adopted globally in the field of green finance. Taxonomy refers to a standardized definition and categorization of economic activities that consider environmental factors, helping to assess which activities are deemed environmentally responsible. By establishing clear principles and guidelines, taxonomy promotes transparency and consistency throughout the system. Taxonomy serves as a vital tool for the allocation of government funds and supportive measures, as well as for guiding private sector investment, to accurately achieve sustainability and climate change goals. The essence of Thailand's Taxonomy is a voluntary central standard that serves as a reference for classifying and grouping environmentally friendly economic activities within the country. It is divided into three categories: green, yellow, and red. Activities must not cause significant negative impacts on the achievement of other environmental objectives while also considering social impacts (Source: Office of The Securities and Exchange Commission, Thailand). Phase 1 focuses on the energy and transportation sectors, while Phase 2 is expected to encompass other significant sectors, including manufacturing, agriculture, construction, and waste management.
The Thai Rubber Association (TRA) will monitor the progress of taxonomy and other sustainability-related standards to inform our members and relevant sectors. This effort aims to ensure that stakeholders are aware of and prepared for any new standards that may impact Thailand's rubber industry.
Mr. Veerasith Sinchareonkul
President
The Thai Rubber Association
