Implementing the OECD Framework for Industry’s Net‑zero Transition in Thailand

Annex K. Analysis of the coverage of the selected low-carbon options by the Taxonomy

Based on the activities defined in the manufacturing section of the Taxonomy, option No. 1 could be covered by the group “Hard to abate activities – Manufacturing of basic chemicals” and option No. 2 by “Interim activities – Manufacture of plastics in primary forms”.

Olefin production with CCS (option No. 3) is covered by the group “Hard to abate activities – Manufacturing of basic chemicals”, complemented by criteria related to “CCS/CCUS related activities (capture, transport and storage)”.

Table A K.1. Key criteria of relevant sections of the Taxonomy

	Relevant category of Taxonomy to cover option No. X	Key criteria of the taxonomy to cover option No. X
		Green	Amber	Red
Option No. 1	Hard-to-Abate activities / Manufacture of basic chemicals/ High-value chemicals (ethylene, propylene, butadiene)	Carbon intensity thresholds   Year 2025 2030 2035 2040 2045 2050 tCO2e/tHVC 0.77 0.68 0.60 0.43 0.26 0.09 (scope 1 & 2)   and   The biomass used should comply with the green criteria applicable for biomass sourcing set out in the “Taxonomy Bioenergy criteria” (defined in the Thailand Taxonomy).	The biomass used should comply with the green criteria applicable for biomass sourcing set out in the “Taxonomy Bioenergy criteria”.	Activities that do not comply with the green or amber category
		Green	Amber	Red
Option No. 2	Interim activities/ manufacturing of plastics in primary form	The plastic in primary form is derived wholly or partially from renewable feedstock (defined as feedstock certified by Roundtable on Sustainable Biomaterials or International Sustainability and Carbon Certification) and its life cycle GHG emissions are lower than the life cycle GHG emissions of the equivalent plastics in primary form manufactured from fossil fuel feedstock. Life cycle GHG emissions are calculated using ISO 14067:2018, ISO 14064-1:2018 or comparable.   and   The activity does not use food or feed crops from the land that was converted from high-carbon stock land after 01.01.2010.   and   if used, wood biomass must come from plantations that comply with “Forestry Plantation” criteria of the Thailand Taxonomy.	Not applicable	Activities that do not comply with the green or amber category
Option No. 3	Hard-to-Abate activities / Manufacture of basic chemicals/ High-value chemicals (ethylene, propylene, butadiene)	Carbon intensity thresholds   Year 2025 2030 2035 2040 2045 2050 tCO2e/tHVC 0.77 0.68 0.60 0.43 0.26 0.09 (scope 1 & 2)   and   “Only eligible for existing unabated GHG facilities prior to 2040” (requirement arising from the use of fossil gas or naphtha).	“The minimum capture rate from the entire facility should be 90% and there is evidence that demonstrates the CO2 will be suitably transported and stored in line with the Taxonomy criteria for CCS (green category)”   and   “Retrofitting activities (CAPEX) should be implemented prior to the designated sunset date of 2040”.   and   “The company that owns the facility should have a transition plan aligned with the commitments under the Paris Agreement and/or net-zero GHG emissions target of Thailand”.	Activities that do not comply with the green or amber category
	CCS/CCUS- Related activities (capture, transport and storage)
		Green	Amber	Red
	Point source capture of CO2	“Point-source capture of CO2 is eligible only as a supplementary activity for the activities in the Taxonomy”   and   “Point-source capture of CO2 is eligible as green if it makes the target activity compatible with the green criteria for a specific activity” (i.e. manufacture of HVC, see above).	“Point-source capture of CO2 is eligible only as a supplementary activity for the activities in Thailand Taxonomy”   and   “Point-source capture of CO2 is eligible as amber if it makes the target activity compatible with the amber criteria for a specific activity” (i.e. manufacture of HVC, see above).	Not applicable
	Transportation of captured CO2	“The CO2 transported from the installation where it is captured to the injection point leads to: - If transported by sea: CO2 leakages are less than 3% of the mass of CO2 transported regardless of the distance and less than 2% after 2040 - If transported via pipeline: CO2 leakages are less than 0.5% of the mass of CO2 transported”   and   “The CO2 is delivered to a permanent CO2 storage site that meets the criteria for underground geological storage of CO2 set out in the activity «Permanent sequestration of captured CO2» article”   and “Appropriate leak detection systems are applied and a monitoring plan is in place, with the report verified by an independent third party”;   and   “The activity may include the installation of assets that increase flexibility and improve the management of an existing network.”	“Retrofitting of the existing CO2 transportation systems in order to bring down the leakage rate from the current rate to the rate specified in the green category is eligible as amber”;   and   “The starting leakage rate may not be above 10 % of the mass of CO2 transported, regardless of the mode of transportation”;   and   “The CO2 is delivered to a permanent CO2 storage site that meets the criteria for underground geological storage of CO2 set out in Section «Permanent sequestration of captured CO2»”;   and   “Appropriate leak detection systems are applied and a monitoring plan is in place, with the report verified by an independent third party”;   and   “The activity may include the installation of assets that increase flexibility and improve the management of an existing network”.   and   “The sunset date for this activity is designated as 2040”.	Transportation or retrofitting of transportation systems that do not comply with relevant green and amber criteria
	Permanent sequestration of captured CO2	“Construction or operation of a permanent CO2 storage facility is eligible if the facility complies with requirements and recommendations of ISO 27914:2017 (or any other comparable national or international standard) for geological storage of CO2.”	Not applicable	Construction of new facilities that fail to comply with ISO 27914:2017 (or any other comparable national or international standard)

Source: Authors based on (Bank of Thailand, n.d.[1]).

References

[1] Bank of Thailand (n.d.), Thailand Taxonomy Driving the Thai Economy Towards Sustainability, https://www.bot.or.th/en/financial-innovation/sustainable-finance/green/Thailand-Taxonomy.html.