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Definition

Thailand Taxonomy

The Thailand Taxonomy is a voluntary classification system that uses sector criteria to label Thai economic activities green, amber, red, or out of scope for environmental and transition finance decisions.

What is the Thailand Taxonomy?

The Thailand Taxonomy voluntarily classifies activities, not whole companies. Green means substantial contribution, amber means transition, and red means incompatible with a net-zero pathway. An absent activity is out of scope, not automatically harmful.

Phase 1 covered energy and transport. Phase 2, published on 27 May 2025, added agriculture, construction and real estate, manufacturing, and waste management. Do No Significant Harm (DNSH) checks whether the activity harms other environmental objectives. Minimum Social Safeguards (MSS) checks for negative social consequences. See Thailand's reporting requirements.

Why does the Thailand Taxonomy matter to you?

A bank, investor, or bond reviewer may ask which activity and financing amount meet a green or amber activity card. Keep the activity code, criteria version, calculation, legal-compliance records, and DNSH and MSS assessment together. A company-wide claim cannot replace this test.

How does the Thailand Taxonomy work?

Find the economic activity's sector card. Test its threshold or listed measures, then check DNSH, MSS, and applicable law. Eligible means the activity is listed. Aligned means it passes every relevant condition. If no card fits, check for an auxiliary activity before recording it as out of scope.

What mistakes should you avoid?

  • Labelling the whole company green because one activity qualifies.
  • Treating a voluntary classification as a legal filing requirement.
  • Ignoring DNSH, MSS, or Thai legal compliance after meeting a climate threshold.
  • Calling an unlisted activity red instead of out of scope.

Is the Thailand Taxonomy mandatory?

No. The Bank of Thailand calls it a voluntary common reference. A financing agreement or reporting rule can still require information.

Is the Thailand Taxonomy the same as the EU Taxonomy?

No. Both classify activities, but Thailand uses its own sectors, thresholds, traffic-light categories, and 2040 sunset date for amber activities. Apply the framework named in the request.

Example

Jurisdiction adjustment: The assigned domain was a paper mill in Singapore. Because this term applies to Thailand, the example uses a paper mill in Thailand.

Suppose a hypothetical Thai paper mill has no specific manufacturing activity card. It plans an energy-efficiency project under the Phase 2 auxiliary transitional activity. Its verified baseline is 1,000 kWh of energy input per tonne of paper. After the project, the measured intensity is 600 kWh per tonne.

Threshold test: (1,000 - 600) / 1,000 = 40%. The project meets the activity's minimum 40% energy-efficiency improvement threshold for amber classification. To complete Option 1, the mill must achieve the reduction by 2040, reduce hydrocarbon use if it uses hydrocarbons, and maintain a Paris-aligned transition plan where a credible pathway exists. It must also pass the Taxonomy's separate DNSH, MSS, and applicable-law checks.

Where it comes up

Thailand Taxonomy Phase 2 manufacturing-sector coverageBank of Thailand joint press release, 27 May 2025Traffic Light System and essential DNSH and MSS criteriaThailand Taxonomy Introduction, Methodological Summary sections 1 and 2Official sourceAuxiliary transitional activity for manufacturing activities without a specific cardThailand Taxonomy Phase 2 Manufacturing sector, section 6.5, Option 1Official source

Related terms

EU Taxonomy

The EU Taxonomy classifies activities as environmentally sustainable when they support an environmental goal, do not seriously harm the others, follow basic social safeguards, and meet detailed activity rules; Article 8 turns the assessment into company disclosure figures.

Green loan

A green loan finances or refinances eligible environmental projects under deal-specific rules for project selection, proceeds tracking, allocation reporting, and impact reporting.

Green Bonds

A green bond is a bond whose proceeds are reserved for eligible projects with environmental benefits; the label applies to the financing, not automatically to the issuer's whole business.

Climate transition plan

A climate transition plan turns a climate target into dated actions, assigned resources, governance, financial assumptions, and progress measures for changing a company's strategy and business model toward a lower-carbon economy.

Sources

Last verified 2026-08-20

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Thailand Taxonomy Definition | Keslio