Small Firms Encouraged to Adopt Green Practices for Access to Financial Assistance
A new green loan scheme, backed by the Federation of Thai Industries and the Thai Bankers' Association, aims to assist SMEs in reducing their carbon footprint and adapting to climate change impacts.
Small and medium-sized enterprises (SMEs) in Thailand are being encouraged to adopt environmentally friendly practices in order to access a new financial assistance scheme worth 5 billion baht.
The initiative, launched by the Federation of Thai Industries (FTI) in collaboration with the Thai Bankers' Association, is aimed at helping SMEs overcome challenges related to financing, particularly in the context of growing environmental concerns.
The scheme offers financial support to businesses seeking to reduce their carbon emissions and invest in sustainable technologies.
According to Chaiwat Kovavisarach, vice-chairman of the FTI, this green loan initiative provides an opportunity for SMEs to engage in projects that not only reduce carbon dioxide emissions but also help them adapt to the adverse effects of global warming, such as more severe droughts and floods.
Thailand is one of the world’s contributors to carbon dioxide emissions, with an annual output of around 350 million tonnes.
The energy and industrial sectors account for over 75% of the total emissions.
Despite Thailand’s relatively small share in global emissions, the government is committed to achieving carbon neutrality by 2050, aiming for a balance between carbon emissions and absorption.
The scheme is supported by nine commercial banks, which are not only offering loans but also providing advice on green initiatives, assessing the feasibility of such projects, and linking businesses to the carbon credit market.
Prakob Phiencharoen, an executive committee member of Bank of Ayudhya, noted that the scheme is designed to encourage businesses to take tangible steps toward sustainability.
As part of its broader efforts to assist SMEs in overcoming economic challenges, the FTI has introduced the “Four Goes” campaign.
This initiative encourages businesses to embrace green practices (Go Green), digital transformation (Go Digital), innovation (Go Innovation), and global expansion (Go Global) as strategies for growth and survival amid ongoing economic uncertainty.
Kriengkrai Thiennukul, chairman of the FTI, emphasized that many FTI members are SMEs, and the federation hopes this green loan initiative will enable businesses to reduce their carbon footprints and, in turn, reduce the economic losses caused by climate-related disasters.
The initiative, launched by the Federation of Thai Industries (FTI) in collaboration with the Thai Bankers' Association, is aimed at helping SMEs overcome challenges related to financing, particularly in the context of growing environmental concerns.
The scheme offers financial support to businesses seeking to reduce their carbon emissions and invest in sustainable technologies.
According to Chaiwat Kovavisarach, vice-chairman of the FTI, this green loan initiative provides an opportunity for SMEs to engage in projects that not only reduce carbon dioxide emissions but also help them adapt to the adverse effects of global warming, such as more severe droughts and floods.
Thailand is one of the world’s contributors to carbon dioxide emissions, with an annual output of around 350 million tonnes.
The energy and industrial sectors account for over 75% of the total emissions.
Despite Thailand’s relatively small share in global emissions, the government is committed to achieving carbon neutrality by 2050, aiming for a balance between carbon emissions and absorption.
The scheme is supported by nine commercial banks, which are not only offering loans but also providing advice on green initiatives, assessing the feasibility of such projects, and linking businesses to the carbon credit market.
Prakob Phiencharoen, an executive committee member of Bank of Ayudhya, noted that the scheme is designed to encourage businesses to take tangible steps toward sustainability.
As part of its broader efforts to assist SMEs in overcoming economic challenges, the FTI has introduced the “Four Goes” campaign.
This initiative encourages businesses to embrace green practices (Go Green), digital transformation (Go Digital), innovation (Go Innovation), and global expansion (Go Global) as strategies for growth and survival amid ongoing economic uncertainty.
Kriengkrai Thiennukul, chairman of the FTI, emphasized that many FTI members are SMEs, and the federation hopes this green loan initiative will enable businesses to reduce their carbon footprints and, in turn, reduce the economic losses caused by climate-related disasters.
