May 29, 2024
Bank of Thailand encourages transition finance to support local businesses
The Bank of Thailand urges large commercial banks to provide transition finance to aid local businesses in shifting to sustainable practices. Last year, large local banks reported a total of 190 billion baht in green loans, showing a growing interest in green loan products. Several banks have pledged to achieve net-zero emissions by 2065 and have set goals to expand sustainable finance within the next five to 10 years. Thailand's commitment to net-zero emissions by 2065 is due to its economic context, with much of its industrial sector relying on outdated technology and fossil fuels. The central bank has mandated banks to develop transition financial products and services to support local businesses in sustainability.