The Asian Development Bank (ADB) and Energy Absolute Plc (EA) have signed a 1.5 billion baht (US$47.6 million) green loan to finance ongoing renewable energy projects and a countrywide electric vehicle (EV) charging network in Thailand.
The loan will be used to finance the Nakhon Sawan solar power and Hanuman wind power plants, and deploy fast and standard chargers at charging stations across the country. Thailand aims to be a regional leader in electric vehicles to reduce greenhouse gas emissions from conventional forms of transportation, which currently accounts for around 26% of the country's total annual emissions.
"ADB aims to increase awareness of green financing by continuing to support Thailand's renewable energy sector and investing in the electrification and decarbonization of its transport sector," said Jackie B. Surtani, ADB's director of the infrastructure finance division for East Asia, Southeast Asia and the Pacific.
"ADB sees Energy Absolute's leadership in green investment as an invaluable step in developing the financing of renewable energy in the region," according to Mr Surtani.
This green loan is the first climate loan in Thailand to be certified by the Climate Bond Initiative, which is responsible for administering the international Climate Bond Standards and Certification Scheme.
Green loans are used to fund projects that benefit the environment, while climate loans focus on climate change benefits.
"We are positioned to grow our businesses in green energy and have been investing in modern technology-based industries that offer a total solution for promoting renewable power and electric mobility in Thailand and other countries," said Energy Absolute deputy chief executive Amorn Sapthaweekul.
"ADB's continued support not only helps us financially but also highlights our trustworthiness and enhances our reputation," Mr Amorn said.