Phased Approach: Thailand’s Green Taxonomy was designed in phases, offering a practical model for jurisdictions seeking to begin with high-emission sectors and expand over time.Phase 1 focuses on energy and transport -together responsible for the majority of national emissions– while Phase 2 aims to include sectors such as manufacturing, agriculture, waste management, and construction

Balancing Continuous Improvement with Regulatory Certainty:The Taxonomy incorporates a triannual revision process and partial grandfathering mechanism, ensuring flexibility as standards evolve. This allows financial products -such as green bonds or loans- to retain their green or amber classification under earlier criteria, even after updates to the taxonomy, provided they still meet the original requirements. This approach strikes a balance between regulatory certainty and continuous improvement, supporting long-term investor confidence while enabling alignment with advancing climate goals.

Context-Specific Traffic Light System: The Taxonomy uses a traffic light classification -green, amber (transitional), and red- tailored to the country’s national context. While green thresholds align with global 1.5°C standards, amber thresholds reflect Thailand’s own decarbonisation trajectories and are subject to a sunset clause to ensure alignment with long-term climate goals. This gives Thai businesses greater flexibility to transition without weakening climate ambition. The taxonomy also allows activities that do not initially meet Do No Significant Harm (DNSH) criteria to remain eligible if a credible remediation plan is provided within 3 years, demonstrating a pragmatic approach that acknowledges different starting points while upholding environmental and social safeguards.