Six trends that can drive Thailand towards net-zero emissions
Six trends could drive Thailand and other ASEAN countries towards net-zero carbon emissions, according to the United Overseas Bank (Thailand).
Some experts say another big industrial revolution is going to happen by 2050, as a transition from fossil fuels to renewable energy gathers speed. This issue became a hot topic during the 28th United Nations Climate Change Conference, known as COP28.
Renewable energy, electric vehicles, hydrogen and the “circular economy” will play important roles in the move to a net-zero economy era, said the bank’s head of sustainable business, Melissa Moi. There are six megatrends that have implications for Thailand as the shifts occur, according to the United Overseas Bank.
The six megatrends are:
1. Climate change will be more severe: Even though this issue has been discussed for many decades, the world may be on the verge of failing to reduce carbon dioxide emission to limit global temperature to 1.5C above the pre-industrial era.
2. A US$1 trillion opportunity in ASEAN: Net-zero does not mean the business sector is going to die due to adaptation, but instead seizes the opportunity to shift towards sustainability. Many sectors in ASEAN are transitioning towards renewable energy and improving working efficiency, worth a potential $1 trillion, including sustainable resources and energy, food and agriculture, green city and inclusion, and efficient industry measures.
3. Comprehensive social and environmental management: Large companies are increasingly transitioning to environmental management throughout the supply chain, covering their partners.
4. Policy changes and the European Union’s Carbon Border Adjustment Mechanism (CBAM): The mechanism, lauched this year, is a factor that pressures the business sector to adapt in order to trade with European countries. Nowadays, many companies in ASEAN are suppliers to Europe and the US.
5. Sustainability must be transparent and 6. Investors will ask deep questions about environmental, social, and corporate governance (ESG): Business operators’ current announcements toward net-zero will be insufficient because investors will ask deep questions about their commitment. For instance, details of how businesses will reach the goal, what their transitioning plan is, and what they will do during the transition.
The net-zero transition must be driven throughout the ecosystem and with the government’s clear direction and concrete policy, so that the financial institutions and economic sector can work efficiently, the UOB (Thailand) head of sustainable business added.
