Bangkok Bank supports entrepreneurs to become green businesses

Bangkok Bank is supporting Thai entrepreneurs to become green businesses by launching the Bualuang Green Financing for Transition to Environmental Sustainability loan, with a total available credit of 10 billion baht, a low interest rate and a maximum loan term of eight years. This is intended to help companies adapt to the global green trend, improve their competitiveness and expand their business in the long term, while underlining the Bank’s role as a trusted partner that grows sustainably together with Thai society.

Bangkok Bank President Chartsiri Sophonpanich said Thailand announced its intention to achieve carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065 at the 26th session of the United Nations Conference of the Parties (COP 26). Although these goals are several decades away, businesses must start adapting now due to the implementation of the Carbon Border Adjustment Mechanism (CBAM) in the European Union (EU), which will come into force from 2026.

Under this mechanism, if products exceed EU carbon emissions limits, importers will be required to purchase CBAM certificates to offset the excess emissions. This will consequently increase the cost of importing goods and potentially affect competitiveness. This measure is also being implemented in other countries such as the UK, US and Australia, so pressure has begun on companies to adapt.

As a leading regional bank, Bangkok Bank’s commitment to sustainability is reflected in a number of ways, including in its green financing. In addition, the Bank provides essential knowledge and information to clients and training to loan officers to ensure they are equipped to offer expert advice and guidance to clients as a “trusted partner”.

Bangkok Bank recently launched the Bualuang Green Financing for Transition to Environmental Sustainability loan at the Financing the Transition event organised by the Bank of Thailand (BOT). It aims to provide financial support to companies wishing to transition to environmental sustainability in three aspects: 1) carbon emission reduction, 2) climate transition and 3) pollution reduction.

The loan has a special interest rate and a repayment period of up to eight years, with total funding available of 10 billion baht to support customers’ needs.

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“Bangkok Bank is committed to supporting sustainable development that encompasses environmental, social and governance issues through the continuous adoption of policies in our business operations. The launch of the Bualuang Green Financing for Transition to Environmental Sustainability loan aligns with the Bank of Thailand’s strong commitment to fostering green businesses. As a trusted partner, the Bank supports clients in their transition to green businesses, enabling them to be resilient and competitive and face future challenges,” said Mr. Chartsiri.

Bangkok Bank Senior Executive Vice President Siridej Aungudomsin said the Bualuang Green Financing for Transition to Environmental Sustainability loan is available to large, medium and small enterprises, including sole proprietors and legal entities registered in Thailand with an establishment in Thailand.

Entrepreneurs must have an investment project aimed at business improvement for environmental sustainability that meets one of the following three aspects:

• Investment to reduce carbon emissions, such as energy-efficient buildings, investment in energy efficiency improvements and investment in replacing fossil fuel appliances with electric appliances, such as heat pumps.
• Investment for climate transition, such as precision agriculture technology to reduce the use of water, chemical fertilizers and pesticides, the use of an evaporative cooling system in greenhouses to reduce greenhouse temperatures while avoiding diseases from outside to minimize agricultural production losses, and investment in technology and processes to increase the efficiency of water management, including its reuse.
• Investments to reduce pollution, such as wastewater treatment systems and treatment of air pollution, including PM 2.5 particles.

“We emphasize that each project approved for Bualuang Green Financing for Transition to Environmental Sustainability must be able to create a concrete impact. The Bank will continuously monitor its performance to ensure that it can reduce its environmental impact as planned. In addition, these investments supported by the Bank will have a positive impact on the company in terms of cost reduction, risk reduction, increased profits, creating competitive advantages and keeping pace with global trends,” said Mr. Siridej.

Bangkok Bank is committed to supporting sustainable development that encompasses environmental, social and governance issues.

Bangkok Bank supports entrepreneurs who want to invest in saving energy and reducing their environmental impact, as well as reducing or maximising resource use. The Bank has helped clients succeed in various industries, such as electronics, which uses a lot of water. The Bank has funded investment projects for clients to reuse more than 70% of water. In the energy industry, there is an investment project to increase energy efficiency with cogeneration, using hot gas from machines to produce steam in the production process instead of wasting heat.

On the other hand, in the case of SMEs and service companies, there are many companies that invest in upgrading equipment or using better technologies in energy-intensive systems such as heating/cooling systems, compressed air systems, or that allow energy management companies to help plan and renovate offices to make them energy-efficient. In the agricultural sector, there are clients that have invested in installing drip irrigation systems in sugarcane plantations to improve water management and make it more efficient and that have replaced pumping motors with solar-powered motors.