Kasikornbank (KBank), a leading player in Thailand's carbon credit market, is committed to developing innovative solutions to promote the country's sustainability.
According to Pipit Aneaknithi, co-president of the bank, KBank is a major buyer in the domestic carbon credit market.
The bank purchases carbon credits from corporate clients to offset its greenhouse gas emissions, in line with sustainability targets and international regulatory standards.
The sellers of these credits come from various sectors, including oil and gas as well as agriculture. The types of credits also vary, ranging from carbon to waste-related credits.
KBank not only participates in credit trading, but also helps to shape and strengthen Thailand's carbon credit ecosystem, supporting customers in their transition towards sustainability.
"If Thai businesses can meet European carbon emission standards and elevate their carbon credit trading systems to the level of the EU Emission Trading System, it will unlock greater export opportunities for the region and help mitigate risks from potential US tariff hikes," Mr Pipit said.
In Thailand, major players in carbon credit trading include Bangchak Corporation, PTT, Siam Cement Group, Charoen Pokphand Group and Krungthai Bank. These companies engage in the market and contribute significantly to the nation's emission reduction goals, he said.
In the banking sector, KBank is a leader in sustainable financial services. As of March, the bank's sustainable financing and investment totalled 150 billion baht, progressing towards its overall target of 200 billion baht by 2030, said Mr Pipit.
"We are confident we'll reach the 200-billion-baht target this year, and there is potential to lift that goal further, depending on developments in government-led sustainability initiatives," he said.
KBank, Thailand's third-largest lender by total assets, aligned its sustainable finance strategy with the nationally determined contribution 3.0 roadmap. The bank focuses on four sectors for emissions control: energy, coal, oil and gas, and cement.
KBank also monitors the automotive and aluminium industries.
The bank has committed to achieving net-zero emissions for its own operations by 2030, while also supporting clients in their decarbonisation efforts.
KBank projects its own greenhouse gas emissions at around 72,000 tonnes last year, with emissions from its total loan portfolio expected to reach as high as 48 million tonnes.
Mr Pipit said the bank is prepared to collaborate with all stakeholders, including businesses, consumers, policymakers, regulators, climate research institutions, and the financial and capital markets, to drive a successful transition towards sustainability.