Deadline: 25-Sep-2024
The UK Partnering for Accelerated Climate Transitions (UK PACT) has launched a new funding opportunity in Thailand in the green finance, carbon pricing and disclosures sectors.
Thailand UK PACT is seeking to extend its support to Thailand’s climate actions in green finance, carbon pricing and disclosures through technical assistance and capacity-building projects.
Themes
- Theme 1 – Green and transition finance with interventions on taxonomy, sovereign and sub-sovereign thematic bonds and transition finance;
- Theme 2 – Carbon pricing with interventions on carbon tax, mandatory Emissions Trading System (ETS) scheme and Carbon Border Adjustment Mechanism (CBAM) impact mitigation;
- Theme 3 – Non-financial reporting and disclosures with interventions on strengthening readiness to adopt and report in line with International Sustainability Standards Board (ISSB) sustainability and climate-related disclosure standards.
Funding Information
- Successful projects will receive grants of up to £500,000 per year (THB 23 million). Applicants should propose projects of up to 24 months in duration.
What are they looking for?
- They are looking to award grant funding to initiatives that enhance green finance, carbon pricing and disclosures in Thailand, with a particular focus on reducing carbon emissions. These projects should be in line with government strategies and policies, provide benefits to the private sector and the wider public, and contribute synergistically to development and implementation of climate-related policies and strategies. The overarching goal is to mitigate carbon emissions and contribute positively to scaling financing and investment into green and transition activities. the focus will be on three themes.
Intervention Areas to be supported
- Green and transition finance
- Taxonomy development and implementation: A study to review current reporting and develop proposals for nature aspects of draft Taxonomy Phase II. The study includes, but it not limited to, the following activities:
- Review current taxonomy context: assess the status of taxonomy reporting practices in the first year since Phase I publication and review the draft Taxonomy Phase II document if available;
- Review international best practices and undertake expert interviews: carry out desktop research and interviews with global and/or local experts and private sector representatives on good taxonomy reporting practices and opportunities to promote nature-relevant activities through Phase II;
- Develop benchmark criteria for evaluation and gap analysis: develop a set of benchmark criteria to evaluate the strengths and constraints in taxonomy usability and reporting practices. Taxonomy usability to unlock transition finance should be emphasised. Conduct a gap analysis of proposed nature-relevant activities and technical criteria in Phase II against emerging best practices;
- Sovereign and sub-sovereign thematic bond issuance: a study to identify specific constraints and develop proposals to support high impact thematic bond issuance with lower cost and risk associated. The study includes, but it not limited to, the following activities:
- Develop stakeholder engagement plan: develop a stakeholder engagement plan across public and financial sectors including some global stakeholders for the global investor perspective;
- Assess current market context and identify priority stakeholders: undertake desktop research to assess the general market liquidity and conditions and recent issuances at the national and subnational levels to understand market appetite. Prioritise stakeholders based on market context which could include a national and subnational entity;
- Review international best practices and undertake investor interviews: undertake desktop research on international best practices on scaling thematic bond issuance in emerging market context and identifying eligible, high impact projects. Undertake interviews with local and global investors to understand risks, opportunities and barriers;
- Transition Finance Product Development and Issuance: Series of workshops, knowledge products and/or tools to support transition finance product development based on stakeholder needs. This program includes, but it not limited to, the following activities:
- Develop stakeholder engagement plan: develop a stakeholder engagement plan across public, private and financial sectors including some global stakeholders. Opportunities to leverage experience of global financial associations/institutions in financial product development, evaluation and monitoring should be considered;
- Assess current market context: undertake desktop research to assess the general market liquidity and conditions, availability of transition finance products and related instruments as well as recent issuances, if any, to understand market appetite. Identify risks, opportunities and barriers faced by local financial institutions in transition finance offerings;
- Review international best practices and undertake expert interviews: carry out desktop research and interviews with global financial associations/institutions to identify strategies, resources/tools and enablers that are suited to supporting transition finance offerings in Thailand.
- Taxonomy development and implementation: A study to review current reporting and develop proposals for nature aspects of draft Taxonomy Phase II. The study includes, but it not limited to, the following activities:
- Carbon pricing
- Carbon tax design and implementation: A study to assess interlinkages and implications between the proposed carbon tax and Thailand’s voluntary carbon market. The study includes, but is not limited to, the following activities:
- Review current carbon tax and voluntary carbon market context: assess the status of carbon tax with a focus on the proposed tax on oil products. Assess the strength of Thailand’s voluntary carbon market including trends and projections in terms of volumes, price of carbon and other metrics;
- Review international best practices and undertake expert interviews: carry out desktop research and interviews with global and/or local experts on setting a carbon tax rate that complements/does not actively hinder carbon credit trading;
- Undertake private and public sector consultations: undertake consultations with the Excise Department, other key public sector stakeholders and private sector representatives to understand analysis, objectives and perspectives on the proposed carbon tax rate;
- Carbon markets design and implementation: Roadmap development for developing the supportive infrastructure for data required for an ETS scheme and carbon tax. The study includes, but is not limited to, the following activities:
- Review current MRV context: review the current MRV system across different sectors in Thailand including reporting platforms, institutional mandates and coordination mechanisms, private and public sector capacity, data availability and quality. Existing studies from previous MRV enhancement work should be reviewed;
- Define vision and priority sectors: define a vision for priority sectors (for ETS and carbon tax) through consultations with the Department of Climate Change and Environment, Thailand Greenhouse Gas Management Organisation, Office of Natural Resources and Environmental Policy and other key public sector stakeholders;
- Review international best practices and undertake expert interviews: carry out desktop research and interviews with global and/or local experts on institutionalising MRV within priority sectors covering data related requirements and strategies and institutional and public-private coordination requirements and approaches;
- CBAM Impact Mitigation: A study and workshops to assess market readiness at high-level for CBAM compliance and impact to industry players based on embedded emissions calculations. The study includes, but is not limited to, the following activities:
- Develop stakeholder engagement plan: develop a stakeholder engagement plan across public and private sectors including some global experts on product carbon life cycle analysis, standards, foot-printing methodology and tools;
- Review current regulatory context: review current status and available plans or guidance on CBAM roll out in non-EU countries by EU and other jurisdictions including the UK, Australia, among others. Specific EU reporting guidance and methodology including EU method, equivalent methods and default values should be reviewed;
- Review product carbon accounting context: undertake desktop research and interviews with CBAM impacted industry players to understand current adoption of and enabling environment for product carbon accounting practices in Thailand. Awareness raising on CBAM more generally should be built into this process.
- Carbon tax design and implementation: A study to assess interlinkages and implications between the proposed carbon tax and Thailand’s voluntary carbon market. The study includes, but is not limited to, the following activities:
- Non-financial reporting and disclosures
- Readiness for ISSB standards: A study to assess market readiness at high-level for ISSB adoption and workshops on navigating decision to adopt ISSB standards in regulatory frameworks. The study includes, but it not limited to, the following activities:
- Review current disclosure and regulatory context: review current alignment of relevant regulatory frameworks and to ISSB standards. Consult with key regulators on the potential adoption of ISSB standards to understand stakeholder needs and considerations;
- Undertake document review: review existing documents on infrastructure required for ISSB adoption by jurisdictions including existing guidance from ISSB;
- Assess policy, regulatory and institutional arrangements: undertake a high-level assessment of the current policy, regulatory and institutional arrangements to identify strengths and constraints relevant to ISSB standards adoption, translation and enforcement.
- Readiness for ISSB standards: A study to assess market readiness at high-level for ISSB adoption and workshops on navigating decision to adopt ISSB standards in regulatory frameworks. The study includes, but it not limited to, the following activities:
Eligible Projects
- Proposals must align with the strategic priorities outlined in these terms of reference.
- Budgets should not include capital expenses or tangible assets.
- The value of projects must not exceed £500,000 for one year period.
Who can Apply?
- All organisations that consider themselves capable of delivering the project activities presented may submit proposals, considering aspects such as cost-effectiveness, project management, impacts on GEDSI (Gender Equality, Disability and Social Inclusion), technical capacity of the organisation or proposing consortium. For-profit organisations can apply, but all projects must be delivered on a not-for-profit basis.
Eligibility Criteria
- Both international and local organisations are eligible to apply. Organisations applying as a consortium must have at least one local entity, either as consortium lead or consortium partner.
- Government agencies and/or departments are not eligible to apply either as a lead organisation or partner in a consortium.
For more information, visit UK PACT.