Private sector supports 2065 green targets

Companies are making more green investments, but say government incentives are needed

Participants take part in a panel discussion on green finance at the 2022 Sustainability Expo at the Queen Sirikit National Convention Center in Bangkok on Saturday. (Photo: Wichan Charoenkiatpakul)

The private sector supports the government’s commitment to achieve net zero greenhouse gas emissions by 2065 and would like to see a five-year plan that could help companies meet the target, said Krit Jitjang, president of Kasikornbank Plc.

In recent years, companies have invested more in green financial platforms. Mr. Krit said during a panel discussion on green finance at Sustainability Expo 2022 at the Queen Sirikit National Convention Center on Saturday.

One example is the growing amount of corporate environmental, social and governance (ESG) bond issuance, which grew by 64% from 8.3 billion baht in 2018 to 13.6 billion baht in 2020.

A similar trend is seen in green bonds, whose value has increased from US$1.7 billion (64 billion baht) in 2020 to US$2.6 billion in 2021, an increase of 53%.

Mr. Krit said the country has a good basic infrastructure to do business, but business owners need to invest a lot if they want to make their businesses green.

Unfortunately, few see it as an incentive to adopt green concepts.

The government has told the global community that it aims to be carbon neutral by 2050 and net zero greenhouse gas emissions by 2065. But the problem is that there is no incentives, nor a clear action plan to guide business owners, especially small and medium enterprises. medium-sized businesses,” Mr. Krit said.

“The government should put in place a five-year plan as a guideline for businesses, as this will help build the confidence needed to achieve this,” he said.

Giorgio Gamba, managing director of HSBC Thailand, said sustainable finance in Thailand and Asean is growing strongly even during the Covid-19 pandemic.

At COP26 last year in Scotland, he said his bank supported the Energy Transition Mechanism (ETM), a combination of controlling or phasing out coal-fired power stations and simultaneously developing renewables.

The ETM initiative is led by the Asian Development Bank and supported by governments, as well as private and philanthropic organizations in Asia.

The goal is to reduce coal use by 50% in pilot countries, he said.

Manpong Senanarong, senior executive vice president and head of issuer and listing division at the Stock Exchange of Thailand (SET), said SET knows which companies have clear policies and action plans for a green business ecosystem. .

He said SET has a working group that seeks to ensure that all sustainable finance initiatives come to fruition.

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