Decoding the Thailand Taxonomy: How Classification Drives Sustainable Business
Thailand has introduced the Thailand Taxonomy, a national framework launched in 2025 to classify economic activities based on environmental sustainability and guide the country’s transition toward its 2065 net-zero emissions target. The taxonomy categorizes activities into green, amber, and red tiers across six high-emission sectors—energy, transport, agriculture, manufacturing, construction and real estate, and waste management—according to technical screening criteria covering greenhouse gas reduction, pollution control, and biodiversity protection. By providing a unified standard, the framework enhances transparency, helps businesses align operations with sustainability goals, and supports access to green finance, which has already reached over THB 900 billion in outstanding ESG bonds. While adoption remains voluntary, the taxonomy is expected to become an essential tool for regulators, financial institutions, and corporations to drive low-carbon transformation, improve data disclosure, and strengthen Thailand’s position in the global sustainable investment landscape.