ADB urges Thailand to adopt green finance to tackle climate change
Thailand must accelerate its economic restructuring to effectively tackle climate change, Anuch Metha, director of the Asian Development Bank’s Thailand office in Thailand, told participants of the “Road to Net Zero 2024: The Extraordinary Green” seminar organised by Thansettakij on Wednesday.
Metha emphasised the need for a financial system that supports the green economy in light of the climate challenges facing Thailand and the broader Asia-Pacific region, including unpredictable weather patterns leading to floods and other natural disasters.
“Thailand needs to restructure its economy in line with the reality of climate change if we want to survive in the long term,” he said, highlighting the critical role of green finance in this transition.
Countries in the region require approximately US$1.7 trillion per year (around 59.5 trillion baht) by 2030 to enhance climate-friendly infrastructure. Over the last few years, ADB has partnered with various agencies in Thailand to issue sustainability and blue bonds, raising nearly one billion dollars in bond issuance, which later attracted an additional 10 billion dollars from the market.
Emphasising the need for innovative financial solutions to mitigate investment risks in green projects, Metha called for greater government policy support and collaboration with the private sector to facilitate the flow of capital into green initiatives.
He suggested linking incentives to pollution reduction efforts, such as implementing a carbon tax that allows businesses to earn tax breaks for lowering emissions.
Regional examples, such as the 100-megawatt solar park project in Cambodia and green infrastructure investments in Thailand, including e-tuk tuks and e-buses, illustrate ongoing efforts to transition to a green economy.
Metha also raised concerns about “greenwashing”, where organisations falsely claim environmental friendliness while failing to deliver genuine ecological benefits. He insisted on the importance of funding projects that have clear frameworks for measuring environmental impact, thereby avoiding potential greenwashing.
The ADB's establishment of the Nature Solutions Finance Centre in Bangkok aims to bolster biodiversity and environmental conservation initiatives, reinforcing its commitment to supporting Thailand's green finance objectives.
“The demand for green finance is immense. We need resources from all sectors to create sustainable outcomes, fulfilling our role as a development bank to help Thailand and the region achieve its green finance goals,” Metha concluded.
