Thailand Taxonomy Phase 1

In June 2023, Thailand's Taxonomy Board issued the first phase of its taxonomy for a sustainable economy, which it has developed to serve as a reference tool for economic activities that contribute with climate and environmental objectives. The taxonomy is based on the latest cliamte science and is aligned with the objective of reaching net-zero emissions by 2050 and Paris agreement temperature targets. Phase 1 of the taxonomy focuses only on mitigating climate change and only covers scope 1 and 2 emissions (unless otherwise stated), and focuses primarily on activities related to energy and shipping. The taxonomy employs a "traffic light" system of green, amber, and red activities.The taxonomy defines the activities as follows: "Green activities are substantially contributing to the goal of climate change mitigation by operating at or close to the net-zero goal by 2050" and include two categories of activities: "Near zero activities: activities already at or near net-zero emissions that may require some further decarbonisation but not a significant transition (e.g., solar or wind power generation or operation of electric fleet-based transportation services). Pathway to zero activities: activities that are needed beyond 2050 and have a clear 1.5-degree decarbonisation pathway to 2050 (e.g., shipping).Amber activities are facilitating significant emissions reductions in the short term with a reliable decarbonization pathways and prescribed sunset dates. The activities have not yet reached net zero emission but can still be improved with viable technologies. The amber category is generally relevant only for the existing infrastructure and activities that can be retrofitted and cannot be applied to new ones (which should directly adopt green technologies) to avoid locking-in unsustainable technologies in new projects. Red activities (“stranded”) are the ones that are currently not compatible with net-zero trajectory and are not going to become compatible anytime soon. For the transition to net zero by 2050 to happen, they should be phased out completely (for example, electricity generation from coal)." The second phase of the taxonomy is under consultation from October 2024 to January 2025 and is focused on the manufacturing, agriculture, real estate and construction, and waste management sectors.