Bangkok Bank supports entrepreneurs to become green businesses by offering Bualuang Green Financing for Transition to Environmental Sustainability loans totaling 10 billion baht while emphasizing the Bank's role as a trusted partner who sustainably grows together with Thai businesses and society
Bangkok Bank is supporting Thai entrepreneurs to become green businesses by launching the Bualuang Green Financing for Transition to Environmental Sustainability loan with total available credit of 10 billion baht, a low interest rate, and a maximum loan term of eight years. This aims to help businesses adapt to the global green trend, enhance their competitiveness, and expand their business in the long term, while emphasizing the Bank's role as a trusted partner who sustainably grows together with Thai society.
Bangkok Bank President Chartsiri Sophonpanich said that Thailand announced its intention to achieve carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065 at the United Nations 26th session of the Conference of the Parties (COP 26). Although these targets are several decades away, businesses must begin adapting now due to the implementation of the Carbon Border Adjustment Mechanism (CBAM) in the European Union (EU), which will be effective from 2026. Under this mechanism, if products exceed the carbon emission limits established by the EU, importers will be required to purchase CBAM Certificates to offset the excess emissions. Consequently, this will increase the cost of importing goods and potentially affect competitiveness. This measure is also being implemented in other countries such as the United Kingdom, the United States, and Australia, so the pressure for businesses to adapt has begun.
As a leading regional bank, Bangkok Bank's sustainability commitment is reflected in various ways, particularly its green finance. Additionally, the Bank provides essential knowledge and information for customers and training for loan officers to ensure they are prepared to offer expert advice and guidance to customers as a "trusted partner".
Most recently, Bangkok Bank launched the Bualuang Green Financing for Transition to Environmental Sustainability Loan at the Financing the Transition event organized by the Bank of Thailand (BOT). This aims to provide financial support for businesses wishing to transition towards environmental sustainability in three aspects namely 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 available finance of 10 billion baht to support customer needs.
"Bangkok Bank is committed to supporting sustainable development covering environmental, social and governance issues by continually adopting 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 steadfast commitment to encourage green businesses. As a trusted partner the Bank supports customers in their transition towards green business, 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 individual business operators and juristic persons registered in Thailand with an establishment in Thailand. Entrepreneurs are required to have an investment project aimed at business enhancement for environmental sustainability that meet one of three aspects as follows:
1) Investment to reduce carbon emissions such as energy efficient buildings, investing in energy efficiency improvements, and investing in replacing fossil fuel appliances with electric appliances such as heat pumps.
2) Investment in climate transition such as precision farming technology to reduce the use of water, chemical fertilizers and pesticides, using an evaporative cooling system in greenhouses to reduce greenhouse temperatures, while preventing diseases from outside to minimize agricultural production losses, and investing in technology and processes to increase the efficiency of water management including water reuse.
3) Investment to reduce pollution such as wastewater treatment systems and treatment of air pollution including PM 2.5 particles.
"We emphasize that every project that is approved for the Bualuang Green Financing for Transition to Environmental Sustainability must be able to create a concrete impact. The Bank will continually monitor its performance to ensure that it can reduce its environmental impact as intended. In addition, such bank-backed investments will have a positive impact on the business in terms of cost reduction, reduce risk, increase profits, create competitive advantages, and keep pace with global trends," said Mr. Siridej.
Bangkok Bank supports entrepreneurs who want to invest to save energy and reduce their environmental impact, as well as to reduce or maximize the use of resources. The Bank has helped customers to succeed in a variety of industries such as the electronics industry, which uses a large amount of water. The Bank has financed investment projects for customers to reuse more than 70% of their water. In the energy industry, there is an investment project to increase energy efficiency with co-generation, using hot gas from machines to produce steam in the production process instead of wasting heat. For SME and service businesses, there are many companies that invest in modernizing equipment or using better technology in energy-intensive systems such as heating/cooling systems, compressed air systems or allowing energy management companies to help plan and renovate offices into energy-efficient buildings. In the agricultural sector, there are customers who have invested in installing drip irrigation systems in sugarcane plantations to improve water management to be more efficient and who have replaced pumping engines with solar-powered motors.
Entrepreneurs who are interested in Bualuang Green Financing for Transition to Environmental Sustainability, can contact Bangkok Bank Business Centers nationwide or call 02 230 9679.