# Thailand plans to raise 10 billion baht in one year through new ESG funds

- Link: https://www.thailand-business-news.com/investment/117628-thailand-plans-to-raise-10-billion-baht-in-one-year-through-new-esg-funds
- Published: 2023-12-13T11:51:05+07:00
- Author: Boris Sullivan

The Thai Securities and Exchange Commission has launched 22 mutual funds to support
the country’s environmental, social, and governance (ESG) goals.

The funds, known as Thailand ESG (TESG) funds, aim to attract around 10 billion 
baht ($280 million) in investment by the end of the year. These funds will invest
in Thai bonds or the stocks of companies that meet emissions disclosure and reduction
requirements or have strong environmental sustainability performance.

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## Tax incentives up to 100,000 baht per year

The Cabinet has approved tax incentive measures to encourage sustainable investment
in Thailand for a 10-year tax period (2023-2032). Individuals with taxable income
can benefit from a tax deduction of **up to 30 percent of their assessable income,
with a maximum limit of 100,000 baht per tax year.**

This deduction can be applied when purchasing units of any Thai ESG Funds, provided
that the **investment units are held for a minimum of eight years from the date 
of purchase**. It is important to note that Thai ESG Funds primarily invest in domestic
assets, such as stocks or debt securities, with a focus on environmental protection
and sustainability themes.

The launch of these funds follows the approval of new criteria for TESG funds by
the SEC. Investors in the funds can benefit from tax deductions and exemptions from
capital gains tax. The SEC secretary-general highlighted the importance of attracting
young investors to these funds. Thailand has pledged to become carbon neutral by
2050 and achieve net-zero greenhouse gas emissions by 2065.

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The [SEC has approved the establishment of 22 Thai ESG Funds](https://www.sec.or.th/EN/Pages/News_Detail.aspx?SECID=10325),
and more are expected in the future. The initiative is seen as a key mechanism in
driving the integration of ESG factors into business operations and strengthening
the resilience of the Thai economy. The Thai ESG Funds will also help individuals
build sufficient retirement savings.

See more at [thailandesg.com](https://thailandesg.com/)