Resident Coordinator's Remarks at the Sustainable Thailand 2022 Dialogue "Moving from Ambition to Action towards a Greener Financial System"

[as prepared for delivery]

Your Excellency Minister of Finance Arkhom Termpittayapaisith.

Distinguished guests, colleagues and friends.

It is an honor to welcome you to this dialogue on actions to scale up sustainable financing as Thailand hosts the APEC summit with a focus on the BCG.

The world is faced with interlocking crises that have fiscally constrained government spending, making it vital to unlock additional financing through domestic financial markets to accelerate green growth.

We have been in dialogue with banks, investors and asset managers over the past year and recognize your forward-looking efforts to scale up greener investments. You are on the right pathway!

However, we have a great opportunity to accelerate this transformation to deliver on emission reductions and position financial markets of Thailand as leaders of sustainable growth on the regional and global landscape.

Analysis suggests that Thailand’s green infrastructure requires an investment of about $32 billion. This can be reached if the threshold for green lending and investment is set for as low as 6.3%. 

It is highly encouraging that many more banks and investors in Thailand are aligning with the Principles of Responsible Banking and Investment, adding to their credibility, and supporting the standardization of ESG norms.

The regulators in Thailand have made progress with the One Report providing a solid foundation for consistent disclosures by listed companies.

User-friendly formats, enhanced validation and standardized reporting on emission reductions, human rights, and other dimensions of ESG, will make the One Report even more impactful by facilitating the identification of the right companies to invest in.

Through your commitments we can continue to increase the impetus for a comprehensive taxonomy starting with the energy and transport sectors, which account for half of the country’s emissions. 

The green taxonomy will create an enormous business opportunity to expand lending and investment while boosting incentives for SMEs to green their operations. 

The United Nations stands with you all to support Thailand’s green transition with science-based technical assistance and by showcasing your achievements on the global stage.

There is much work to be done, but by channeling critical investments efficiently we can fast-track the greening of the financial system. 

I very much look forward to continuing to engage with you.

Thank you.