DNV's role in advancing green finance through Thailand’s Provincial Electricity Authority’s (PEA) inaugural sustainability bond

DNV delivered external assurance for PEA's first sustainability bond, supporting Thailand's efforts toward carbon neutrality and green finance innovation.

About Provincial Electricity Authority
The Provincial Electricity Authority (PEA) is a state-owned enterprise in Thailand, tasked with generating, transmitting, and distributing electricity nationwide. PEA is dedicated to achieving carbon neutrality by 2037 and Net Zero Emissions by 2065, in line with Thailand's national sustainability goals.

Advancing green finance for carbon neutrality
As Thailand accelerates its drive towards carbon neutrality, the emphasis on green finance has grown significantly. Sustainability bonds have emerged as a key tool for financing projects that support environmental and social goals. The PEA sustainability bond marks a significant milestone in Thailand's green finance journey, designed to support critical energy infrastructure while adhering to sustainability standards.

Ensuring credibility in sustainable investments
PEA required independent verification to ensure its inaugural sustainability bond met international standards for environmental and social impact, building investor confidence and ensuring funds were allocated to genuinely sustainable projects.

Strengthening transparency with independent assurance
DNV provided a Second Party Opinion to confirm that PEA’s sustainability bond aligned with globally recognized environmental and social finance standards. Our assurance covered compliance with the ASEAN Taxonomy Framework, alongside collaboration with the Asian Development Bank (ADB), ensuring transparency and accountability. The bond’s proceeds will finance key sustainability projects, such as the construction of submarine cable to Koh Samui and Koh Tao, and microgrid power development on Koh Phaluai.

Driving investment for a greener energy infrastructure
Through trusted external assurance, DNV helped PEA secure significant investment for sustainable projects, supporting Thailand’s carbon neutrality goals and driving green finance innovation in the region.

Sustainability bonds at a glance

  • 1 billion-baht (approx. 27 million euros) credit line for the sustainability bond.
  • Fixed interest rate of 2.67% per annum over a 5-year term.
  • Projects include submarine cable construction and microgrid development in climate-vulnerable regions.
  • Supports Thailand’s goal of carbon neutrality goal by 2037 and Net Zero Emissions by 2065.

As Thailand accelerates its transition to carbon neutrality, ensuring transparency and credibility in green finance is essential. By providing an independent Second Party Opinion on PEA’s sustainability bond, DNV has helped build investor confidence and reinforce accountability in the allocation of funds. This milestone not only advances Thailand’s green finance landscape but also supports critical infrastructure projects that drive real progress toward the nation’s sustainability goals."

  • Thomas Leonard
  • Head of Section, Sustainability Services
  • DNV

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