Bangkok, Krungthai COMPASS Research Center advises the business sector to accelerate the adoption of the circular economy concept. Create opportunities to increase income, reduce costs, and answer the question of reducing greenhouse gas emissions. Highlighting "finance for sustainability and finance for transition" as important tools to help businesses adapt. Dr. Pacharapoj Nantaramas, Executive Vice President and Chief Economist of Krung Thai Bank, revealed that the concept of circular economy (Circular economy) is a hot global mega trend. In an era where every party is looking for sustainable growth. and build immunity from raw material shortage problems. and production costs are high from geopolitical risks and a polarized world economy Reflected from the results of a survey of major entrepreneurs around the world on their adherence to the circular economy concept. Thai entrepreneurs Therefore, adjustment to a circular economy should be accelerated. to create opportunities and cope with the changes that come with such megatrends In particular, regulations around the world are paying more attention to this issue, such as Europe, which has begun enforcing new sustainability disclosure regulations (Corporate Sustainability Reporting Directive or CSRD) in fiscal year 2024, which is the first to include factors. circular economy and affecting as many as 50,000 companies. In the next 2-3 years, Europe may enforce the Digital Product Passport measure, which requires manufacturers to publish product information to consumers. which covers the circular economy as well It is a challenging factor for Thai exporters. 'The circular economy will create new opportunities. to entrepreneurs Both opportunities to reduce costs Opportunity to increase income and opportunities to reduce greenhouse gases International research indicates that the circular economy will increase efficiency and reduce costs by reducing materials in production by 28%, increasing global income by as much as 10 trillion USD by 2030, and helping reduce g reenhouse gases around the world. up to 39%, which Thailand still has the potential to develop a lot in the circular economy This is reflected in the rate of reuse or recycling of waste by companies listed on the stock exchange. The average rate is 33% by the transportation and logistics business. Media and publications Personal items and medical supplies The rate is less than 10%, compared to Europe and South Korea which are as high as 46% and 60% respectively,' Dr. Pacharapoj said. Mr. Natthaporn Srithong, analyst at Krungthai COMPASS Research Center, said that sustainable finance and transition finance are important tools to help the business sector adapt to a circular economy and green business. In 2023, To date, approximately US$984 billion in sustainable debt has been issued globally. while in Thailand it is nearly 180 billion baht and it is expected that in the future it will expand even more. From the trend of net zero emissions, for example, Japan plans to issue Transition bonds worth 20 trillion ye n or 135 billion USD in the next 10 years, while in Thailand there are additional supporting factors from Launch of the "Thai ESG" fund, including the Thai banking sector preparing to offer financial products that support the business sector's transition to environmental sustainability (Transition Finance Product) in the beginning of the third quarter of 2024. 'Thai entrepreneurs should quickly adapt to challenges from trading partner countries' regulations. Especially preparing information such as information on the use of recycled production factors. and waste management information as well as adjusting to seek new opportunities Including considering raising funds through Sustainable and Transition Finance, while the government should have supporting measures such as incentives and knowledge support for the business sector. Especially in the SME group and measures to change consumer behavior to be more consistent with the circular economy,' Mr. Natthaporn said. Source: Thai News Agency