Thailand Advances Low-Carbon Economy with World Bank Partnership and Private Capital Mobilization

Key summary

Thai Deputy Prime Minister and Finance Minister Ekniti Nitithamphapath and World Bank Group President Ajay Banga discussed pathways to a low-carbon economy at the IMF-World Bank Annual Meetings in Bangkok. The government supports greenhouse gas reduction aligned with UNFCCC and Paris Agreement commitments, aiming for carbon neutrality and net-zero emissions through public-private cooperation. The Ministry of Finance promotes carbon credit transactions via the Low Carbon Cities and Carbon Market Development (LCC) project, supported by a $200 million loan from the World Bank to EXIM Thailand, guaranteed by the Ministry, to fund Energy Service Companies (ESCOs) for clean energy investments in state assets. Krungthai Bank signed three cooperation agreements with the World Bank Group and various partners including PTT Public Company Limited, Grab Thailand, ACEIS, and Driver AI to build a sustainable economic foundation. Key strategies include a just transition supporting communities, creating low-carbon cities involving multiple agencies and establishing a National Digital Data Platform for transparent carbon credit management, and expanding industrial impact through the I-Spark project in Rayong with PTT to promote clean energy use.