Businesses must cooperate with govt to achieve net zero emissions goal: BOI

The BOI emphasised that going green was not the responsibility of the government alone, and entrepreneurs in all sectors must work together to support Thailand in achieving its net zero goal.

Narit Theodsatheerasak, secretary-general of the BOI, was speaking at a seminar on "Go Green 2024: The Ambition of Thailand - Turning Challenges into Opportunities for Thailand”, organised by "Krungthep Turakij”.

The event featured speakers from both the public and private sectors, who presented their strategies to drive the country towards a green economy and society.

In his special statement on "The Investment Attraction Strategy for Green Industries”, Narit pointed out that the Nation Group had been prioritising green initiatives for the past 4-5 years. While previously perceived as distant, over the past 2-3 years there had been a significant awakening and recognition of the necessity for green initiatives, leading to adjustments in various sectors, he said.

The dedication to green initiatives, however, goes beyond mere aspirations; it embodies ambition and bold determination to reach set goals. This resolve transcends national levels and permeates organisations. Thailand's clear commitment to these goals is evident in its declaration to achieve carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065, he said.

Investment destination

"What matters is how Thailand can take action, and the key to that is cooperation through state mechanisms. Currently the BOI collaborates with both the government and the private sector, including entities like Thailand Greenhouse Gas Management Organisation," Narit said.

Additionally, for Thailand to become a global hub, it must implement the bio-circular-green (BCG) policy. Successfully executing this policy will attract investments from around the world, making it an investment destination acknowledged by the global community, he said.

The mission of the BOI involves promoting comprehensive investment, which includes providing services, consultations, facilitating convenience, and sourcing investors. This encompasses support in taxation, finance, corporate income tax, and import duties on raw materials, among others, he said.

Green initiatives inevitable

In the next five years, several key factors will play a crucial role. Over the past 6-7 months, the BOI has had the opportunity to participate in roadshows with Prime Minister Srettha Thavisin, attracting a significant number of foreign investors, Narit said. During these discussions, investors emphasised several points: How to achieving carbon neutrality goals; geopolitical issues; and new tax regulations, particularly, the implementation of new tax regulations requiring large multinational companies to pay a minimum tax of 15%.

Narit highlighted that green initiatives would affect every company and industry, regardless of size. Therefore, going green is not just about national responsibility but something that businesses must collaborate on to achieve the country's goals. In this regard, investments should contribute to these objectives. Leading companies have announced net zero targets earlier than the national goals. When direction is clear, speed, or the ability to act quickly is crucial, he said.

Priority for BCG

In supporting the industrial sector, the BOI places importance on promoting businesses in the BCG group, he said. Currently, there are over 50 enterprises covering various industries including agriculture, food, biotechnology, clean energy, and eco-friendly service businesses. Over the past five years, more than 2,600 projects have been promoted, with a total investment of over 490 billion baht, Narit revealed.

In addition, the BOI offers incentives to stimulate the private sector's adaptation towards becoming smarter and more sustainable. This includes supporting funds for machinery conversion to increase energy efficiency, upgrading solar panels to reduce greenhouse gas emissions, and elevating businesses to international sustainability standards, he said. This is aimed at accelerating the transition towards green goals. With the intensifying green trend since 2022, there has been an increased demand for support, especially post-Covid, as companies begin to adjust to compete in the future global landscape.

Focus on clean energy

As for the energy sector, the BOI is promoting clean energy production in all forms, including solar energy, wind energy, biomass, hydrogen gas, and even energy from waste. This sector is fully supported, and in the past year various companies, especially those involved in renewable energy, have increasingly sought additional support, he said. In the previous year alone, there were 440 projects with a total investment of over 70 billion baht, which is three times higher than in 2021. This reflects the growing awareness on the necessity for clean energy, leading to an increase in businesses seeking to enhance their clean energy capacity, Narit said.

Success of EV policy

In the transportation sector, the main goal is the transition from conventional vehicles to electric vehicles (EVs). The government is consistently committed to promoting Thailand as a hub for EV production, aiming to be the number one EV manufacturing centre in the region and one of the top globally. The "30@30" target has been set since the inception of the policy, aiming for Thailand to produce EVs that will account for at least 30% of total vehicle production by 2030.

Additionally, the measures implemented cover all aspects of the full ecosystem, including batteries, key components, and chargers, he said.

In the past two weeks there has been good news, with two Chinese companies interested in investing in establishing battery cell production facilities in Thailand. These companies are planning to set up factories with capacities ranging from 6 to 10 gigawatts. The combined investments of these two companies is estimated to be no less than 30 billion baht.

The measures implemented to create a market for EVs in Thailand have been highly successful, starting from EV 3 and continuing to EV 3.5. As of now, eight Chinese automotive companies — BYD, MG, Great Wall Motor, Changan Automobile, GAC Aion, NETA, Foton, and Chery — have invested in Thailand. Moving forward, the BOI would continue to attract new automotive companies while supporting existing ones in successfully transitioning to electric vehicles, he said.