Bangkok, April 5- "Krung Thai" joins forces with "PTT" to enter into a carbon credit hedging derivative contract. capital market innovation Meet the needs of a zero carbon emission organization.
Mr. Rawin Bunyanusas, Executive Vice President Money Market Business Division Krung Thai Bank Public Company Limited revealed that Krung Thai Bank Signed a Memorandum of Understanding with PTT Public Company Limited (PTT) and PTT International Trading Pte Ltd, Singapore (PTTT 100% owned by PTT) to enter into a hedging derivative contract. Carbon Credit Linked Derivatives is a new innovation in the Thai capital market. To promote the greenhouse gas emission reduction targets of both companies.
It also helps develop the domestic inter-enterprise carbon credit trading market by PTTT in Singapore. The agreement will provide standardized carbon credits to be used to reduce greenhouse gas emissions in future activities. hedge financial risks linked to carbon credits for the first time in Thailand
The agreement also covers the achievement of ESG targets, reinforcing the Bank's commitment to developing and market leading ESG Financial Solutions to meet the Sustainable Development Goals (SDGs) in addressing climate change. Promote responsible consumption and production and create cooperation for sustainable development including focusing on reducing greenhouse gas emissions Becoming a Net Zero Emissions Organization
Ms. Pannalin Mahawongthikul, Chief Financial Officer of PTT Public Company Limited, revealed that PTT has a policy to manage risks from financial volatility using the Natural Hedge method, including the use of risk management tools. when the timing and situation are right This transaction will be the first time carbon credits have been linked. It is considered an innovation of the capital market to promote financial management for organizations in accordance with the sustainable development guidelines of the current world.
PTT sets targets for carbon neutrality by 2040 and net zero greenhouse gas emissions by 2050, faster than national targets. with proactive work adjust production process Research and develop new technologies as well as transforming into an environmentally friendly business, clean energy, electric vehicle business To promote and build the EV Ecosystem in the country, including new businesses beyond energy. As well as increasing the amount of carbon dioxide absorption from reforestation by 2 million rai, divided into 1 million rai of PTT and another 1 million rai of PTT group cooperation within 2030 as well.
Mr. Pongphan Amornvivat, Senior Executive Vice President, International Trading Business Unit, PTT Public Company Limited, revealed that PTT International Trading Pte Ltd (PTTT) is ready to conduct carbon credit trading business both in the form of Over The Counter and the market. Exchanges enable access to and expand the scope of carbon credit trade. Trading carbon credits linked in this transaction It will be a model for the development of carbon credit contracts linked to derivatives for financial hedging or other commercial products in the future to support the country's move towards a low-carbon society. Through operations in all dimensions in terms of economy, society, community and environment to achieve goals Zero net greenhouse gas emissions.-Thai News Agency
Source: Thai News Agency