In recent times, Thailand made great progress to address global climate change. Alongside an anticipated new law on climate change, the country aims at developing its national emission trading scheme, sustainable finance taxonomies, and leverage on its capital markets to mobilize incremental funding to foster a transformation to a sustainable development pathway. As a timely response to the need to scale up climate-aligned financial flows, a trilateral China-Germany-Thailand capacity-building workshop on sustainable finance was organized in Bangkok on November 26-27, 2024.
This event was co-hosted by the GIZ offices in Thailand and East Asia, with technical support from technical experts of the Chinese Institute of Finance and Sustainability (IFS) and German Climate & Company. The workshop aimed to provide an opportunity to bridge knowledge gaps, foster collaborations, and catalyze integrated climate and financial solutions, by bringing together key policymakers, regulators, financial market experts, and other stakeholders. The trilateral cooperation workshop aimed to showcase best practice examples and lessons learned from the Chinese, German, and European context. It provided insights into China’s pioneering experiences and practices in green finance and sustainable finance in the areas of standard setting, policy formulation, product innovation, and creating government incentives. It also elaborated on how the Chinese and German financial sectors are responding to and addressing climate risks and opportunities in a global context. In addition, the technical contribution of German experts provided the Thai target audience with a holistic view of the EU’s sustainability-related policy framework, market trends, and their potential impact on the Thai industry. The joint capacity building approach leveraged the knowledge of both Chinese and German experts and delivered impactful capacity building in sustainable finance.
A Timely Initiative for Thailand
The training was conducted against the backdrop of Thailand accelerating its efforts towards carbon neutrality and net-zero greenhouse gas emissions. Through the Climate Change Act, a landmark piece of legislation currently under public consultation, the country is establishing the right regulatory environment and clear policy signal, embedding carbon pricing instruments. In addition, the Thailand Taxonomy for Sustainable Finance will provide investment guidelines for high-emission sectors. These initiatives have signaled Thailand’s strong commitment to mobilizing both public and private investments for climate resilience and a low-carbon transition.
According to the IMF, an investment gap exceeding 1 trillion USD needs to be mobilized across the Asia-Pacific region to meet climate goals, as mentioned in her opening remarks by Ms. Pimkarn Kattiyavong from GIZ Thailand. For that, capacity development for policy and financial stakeholders is critical. The workshop addressed this need by providing technical inputs and practical tools to align finance flows with sustainable development, as required by the Paris Agreement.
Comprehensive Training Modules
The two-day event featured four key modules: Sustainable Finance, Sustainability Disclosure, Transition Finance and Plans, and Climate Resilience in the Financial Sector. The modules were carefully selected to not only cover the fundamentals of the most relevant topics, but also to provide practical tools and insights that will enable sustainable decision-making and drive the development of local policies and practices.
As many companies in export-driven economies, such as Thailand and China, are navigating the complex and rapidly changing landscape of sustainability disclosure requirements, frameworks, such as ISSB, GRI, the EU’s CSRD, and CSDDD, play a critical role in guiding organizations to disclose and report on sustainability to ensure market integrity and transparency, as well as to manage ESG risks. Through this training, participants gained a deeper understanding of these frameworks, helping them to build the capacity needed to implement and comply with these standards effectively.
The interactive sessions were complemented by several rounds of group work and quizzes encouraging active participation and peer learning among policymakers and financial institutions. These formats successfully triggered lively discussions in the room and insightful presentations from the breakout groups.
Highlights of the Workshop
Key speakers included Dr. Kittisak Prukkanone from Thailand’s Department of Climate Change and Environment (DCCE) of the Ministry of Natural Resources and Environment, project leads from GIZ Thailand and East Asia, and experts from IFS and Climate & Company. Dr. Janto Hess of GIZ East Asia emphasized the importance of international collaboration, particularly the role of Germany and China in advancing green finance standards, such as the Common Ground Taxonomy.
The great potential of linking taxonomies was highlighted by Mr. Cheng Lin. He introduced the recent development of the Multi-Jurisdiction Common Ground Taxonomy (M-CGT), which Singapore joined in November, as a significant step towards harmonizing sustainable finance taxonomies across the three regions. Developed by the People’s Bank of China (PBOC), the EU Directorate-General for Financial Stability (FISMA), and the Monetary Authority of Singapore (MAS), the M-CGT builds on the existing EU-China Common Ground Taxonomy (CGT) to incorporates the Singapore-Asia Taxonomy (SAT). This move will not only contribute to enhanced interoperability, but also boost cross-border green finance and investment by reducing transaction costs and enabling more capital flows especially to developing economies.
Positive Feedback and Impact
Over 70 Thai participants attended the training to deepen their understanding of sustainable and climate finance. The Thai government was represented through a diverse range of public entities, including the Bank of Thailand, the Securities and Exchange Commission, the Stock Exchange, the Fiscal Policy Office, the Department of Climate Change and Environment, and the Office of the National Economic and Social Development council. Private banks and Federal Thai Industry participants represented the private sector enriching the discussions with their perspective on the climate finance agenda.
The participants unifyingly praised the practical relevance of the training and the technical expertise of the trainers. ‘I find the training very useful. I’m grateful for the invitation to this opportunity to widen my horizon.’ said one participating regulator after the training.
The inclusion of diverse stakeholders, from government agencies to private sector representatives, as well as the high percentage of female participants, was seen as a key strength of the event. Many attendees expressed their commitment to implementing lessons learned within their organizations, signaling a broader ripple effect on Thailand’s financial ecosystem. Through initiatives like this, Thailand can not only strengthen its domestic policies but also can contribute to regional and global climate resilience and the shared goals of the Paris Agreement.
With a clear roadmap and strengthened stakeholder capacity, Thailand is poised to lead the region in sustainable finance innovation and implementation.
