Sectoral Decarbonization Strategy

5.1. Portfolio Transition Approach

The Bank places emphasis on managing its power generation credit portfolio by increasing support for clean and low-carbon energy generation while gradually reducing reliance on fossil fuel-based power generation over the long term. This approach aims to support the energy transition and reduce the GHG emissions intensity of the Bank’s lending portfolio in line with the established glidepath. Key actions include :

• Increasing financing support for clean energy and renewable energy projects in line with the Bank’s commitment to provide cumulative sustainable financing and investment of Baht 400–500 billion by 2030 to support the transition of the businesses and the economy towards a low-carbon society.
• Managing the growth of the credit portfolio in a manner consistent with long-term GHG reduction objectives.
• Continuously monitoring and assessing the GHG emissions intensity of the credit portfolio.

5.2 Power Generation Financing Approach

Power Plant Type	Approach
Coal-fired Power Plant	Do not provide financing for new coal-fired power plants. Do not provide new financing or additional credit facilities for long-term capacity expansion of existing coal-fired power plants. Exit financing to coal-fired power plants by 2030.
Natural Gas-fired Power Plant	Do not provide financing for new natural gas power plants that do not use low-carbon technology to significantly reduce emission intensity.
Renewable Power Plant	Increase financing and investment support for clean and renewable power generation projects.

5.3 Client Transition Support

KASIKORNBANK and companies within the KASIKORNBANK FINANCIAL CONGLOMERATE support customers in the power generation sector in their energy transition through a range of financial products and services, as well as non-financial support services. These offerings are designed to facilitate investments in clean energy, low-carbon technologies, and GHG emissions reduction initiatives, thereby facilitating the long-term transition of the power generation sector. Key services include :

• Financial Support

  The Bank supports its customers’ transition through a comprehensive range of financial products and services across lending, investment, and capital markets, aimed at facilitating investments in clean energy, low-carbon technologies, and projects aligned with the transition to a low-carbon economy. These include :

  1. Lending Solutions such as :
     • Green Loan
     • Transition Loan
     • Sustainability-Linked Loan: SLL
     • Corporate Power Purchase Agreement Financing
  2. Investment & Capital Market Solutions such as :
     • Sustainable Bond Investment
     • Investment in Green and Sustainable Securities
     • Sustainable Capital Market Solutions
     • Issuance and underwriting of Sustainable Bond
• Non-Financial Support

  KASIKORNBANK and companies within the KASIKORNBANK FINANCIAL CONGLOMERATE support customers in planning and executing their transition towards a low-carbon economy through advisory services, supporting tools, and knowledge development initiatives. These efforts are designed to strengthen customers’ capabilities in achieving their climate goals. Key services include :

  • ESG Advisory to support readiness assessments, the development of transition plans, and the identification of GHG emissions reduction pathways tailored to customers’ business characteristics.
  • KCLIMATE Carbon Accounting Platform, which enables the collection, calculation, analysis, and monitoring of GHG emissions data, supporting corporate carbon management and climate performance tracking.
  • Creative Climate Research Center (CCRC), which provides data analytics, research, and climate-related insights, including assessments of GHG reduction opportunities and investments in low-carbon technologies.
  • Climate Knowledge & Capability Building through training programs, workshops, seminars, and knowledge-sharing activities to enhance expertise and capabilities in net zero, carbon management, and climate transition.
  • Climate Partnership & Ecosystem, which fosters collaboration among businesses, experts, government agencies, academic institutions, and other stakeholders to drive a tangible transition to a low-carbon economy.

5.4 Client Engagement

The Bank places high importance on continuous engagement with clients in the power generation sector to support their energy transition and GHG emissions reduction efforts in alignment with the clients’ objectives, the Bank’s targets, and the country’s transition pathways.

The Bank’s client engagement approach includes :

• Engaging in discussions with clients on their business strategies, investment plans, and energy transition roadmaps.
• Monitoring clients’ GHG emissions reduction targets and performance.
• Encouraging clients to establish clear net-zero targets and transition plans.
• Supporting clients in improving power generation efficiency, increasing the share of clean energy in their portfolios, and adopting low-carbon technologies.
• Assisting clients in enhancing the quality of GHG emissions data and climate-related disclosures in accordance with relevant standards.

Information obtained from these discussions and monitoring activities will be used to support climate risk management, credit underwriting, and tracking the alignment of its credit portfolio with established GHG emissions reduction targets and glidepath.