Sustainable financing: Unlocking Thailand’s net-zero pathway problem

The urgency of tackling climate change and transitioning in the direction of a sustainable future has drawn increased attention to the importance of sustainable financing in recent years. With each investment decision holding the potential to mould the fate of the planet, governments, companies, and financial institutions are recognising the importance of funding environmentally friendly initiatives.
The push for a net-zero carbon financial system is crucial, as approximately 50 gigatonnes of greenhouse gases are released into the atmosphere yearly. Approximately US$100 trillion in investments shall be wanted by 2050 to make sure the balance between annual emissions and removals is internet zero.
This monumental problem requires collaboration and concerted efforts from diverse stakeholders – governments, regulators, financial institutions, buyers, consumers and actual economic system individuals – who together can redefine the future of our planet via sustainable financing.
Despite numerous ambitious targets declared by countries worldwide, a misalignment can typically be observed between national commitments and the global net-zero emission pathway. This disparity threatens the actualisation of an environmentally sustainable future.
For international locations like Thailand, sustainable improvement is crucial, with a commitment to scale back greenhouse fuel emissions by 30 to 40% by 2030, attain carbon neutrality by 2050, and attain net-zero emissions by 2065.
Tan Choon Hin, President and CEO of UOB Thailand, believes it is crucial that we strike a steadiness between socioeconomic concerns and our net-zero aspirations in order to guarantee a just and easy transition to a greener future.
To achieve meaningful progress, governments and regulators must design sturdy policies and blueprints for sectorial decarbonisation. They hold the power to put the groundwork for impactful policy changes that encourage demand for green products, nurture new markets centered on decarbonisation applied sciences, and facilitate the provision of green production assets.
Moreover, innovative financing fashions and incentives provided by governments can assist local weather expertise frontrunners and generate a beneficial surroundings for sustainable finance. In parallel, corporations and the private sector should make credible pledges to reduce their carbon footprints. Tan said…
“Large corporations, particularly, can leverage their affect by setting science-based net-zero targets and implementing motion plans that align with government policies. They have the power to inspire change all through their worth and supply chains.”
The monetary sector plays a pivotal role in promoting sustainable finance and supporting the shift in the direction of a low-carbon financial system. Financial establishments can proactively manage local weather dangers, align financing and funding activities with net-zero objectives, and develop revolutionary monetary options with tangible impacts on the real economic system, reported Bangkok Post.
For Bargain , UOB has demonstrated its dedication to integrating sustainability into its core operations, offering sustainable services and products and upholding company duty. The bank has developed comprehensive Green Umbrella Frameworks, providing end-to-end financing solutions for numerous industries and aiding the transition to a sustainable future.
Unlocking sustainable financing is essential to achieving a greener future. With rising momentum, significantly in international locations similar to Thailand and financial institutions championing impactful modifications, it’s time for all stakeholders to rally collectively, harness their collective potential, and work towards a more sustainable and inclusive future. Tan added…

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