Bangkok:PTT Group and Krungthai Bank are advancing their Carbon Credit Linked Derivatives project to enhance Thailand's carbon credit market to meet global standards.

According to Thai News Agency, the two organizations are expanding their collaboration in ESG Financial Solutions to support the World Bank Group's Low Carbon Cities and Carbon Market Development Project. This initiative involves the development of Carbon Credit Linked Derivatives, which use carbon credits to help businesses manage financial risk while achieving greenhouse gas emission reduction targets. The collaboration aims to elevate the Thai carbon credit market to international standards and recognition.

Krungthai Bank is utilizing its expertise in money and capital markets to create financial instruments, while PTT contributes knowledge in sustainable business operations and the transition to a low-carbon economy. PTT International Trading is aiding in acquiring high-quality, internationally recognized carbon credits. This collaborative effort integrates financial, energy, and carbon markets to support greenhouse gas emission reductions and establish a Carbon Finance Ecosystem in Thailand. The goal is to create a standardized, transparent, and reliable Thai carbon credit market, offer businesses risk management solutions, prepare for a low-carbon economy, enhance national competitiveness, and support the long-term Net Zero target.