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Krungthai, PTTEP join forces to support Thailand’s net-zero goal
Thailand’s first carbon credit-linked investment programme to invest in projects that will reduce greenhouse gas emissions
Patricia Chiu 29 May 2023

Thailand’s Krungthai Bank and PTT Exploration and Production Public Company (PTTEP), a Thai oil and gas exploration and production company, have partnered to launch the country’s first carbon credit-linked investment programme.

PTTEP is a subsidiary of PTT Public Company, Thailand’s state-owned oil and gas company.

In a statement announcing the launch, PTTEP says it will use part of the returns to purchase high-quality carbon credits, consistent with its goals to reduce greenhouse gas (GHG) emissions. The company has committed to achieving net-zero GHG emissions by 2050. 

Sumrid Sumneing, executive vice-president for finance and accounting group at PTTEP, says the company also plans to invest in projects that support GHG emissions management in the future.

“This groundbreaking financial approach represents the first instance of utilizing financial innovation to support a net-zero GHG emissions target, playing a pivotal role in promoting mutual sustainable growth,” Sumrid says. 

PTTEP also plans to manage its core business of exploration and production, in addition to executing a GHG emissions reduction plan on the production side. 

Meanwhile, Rawin Boonyanusasna, senior executive vice-president of Krungthai’s global markets group, says the company is committed to developing capital market products and services that cater to the requirements of its corporate clients and investors. 

“The bank will assist PTTEP in the acquisition of additional carbon credits, contingent upon PTTEP achieving their GHG reduction key performance indicators (KPIs). This collaborative effort contributes to Thailand's targets of achieving carbon neutrality by 2050 and net-zero emissions by 2065,” Rawin says.

Previously, PTTEP also tapped Krungthai to launch a digital corporate bond and ESG-linked cross-currency swap product which the company says is a first in Asia.

“This collaboration with PTTEP further solidifies our position as a leading provider of ESG financial solutions, continuously developing new financial products and services that address the United Nations Sustainable Development Goals,” Rawin adds. 

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