World Bank sees opportunity for Thailand to leverage global climate finance worth $632bn

The bank also proposed guidelines to drive policies and measures aimed at achieving the country’s goal of reducing greenhouse gas emissions.

At the "Road to Net Zero 2024" seminar organised by Thansettakij on Thursday, Melinda Good, World Bank country director for Thailand and Myanmar, outlined the risks and opportunities associated with the transition to net-zero emissions. 

Thailand has set the ambitious target of achieving carbon neutrality by 2050 and net-zero emissions by 2065, with an interim goal of reducing greenhouse gas emissions by 30% by 2030. 

The World Bank estimates that this transition could cost up to 11 trillion baht, but also presents an opportunity to attract sustainable finance of around $632 billion (approximately 23 trillion baht).

Good emphasised the urgency of the transition. 

"With time moving so quickly, this seminar is crucial. Achieving the country's greenhouse gas emission reduction target will require a combination of carbon pricing, investment support, and policy reform," she said.

She suggested that by integrating key dimensions into the transition process and capitalising on emerging opportunities, Thailand could achieve its environmental goals while fostering economic growth.

To facilitate this transition, the World Bank has proposed a four-pronged framework:

• Financial: The World Bank has collaborated with the Thai government to promote carbon pricing mechanisms and explore opportunities for international carbon credit trading.
• Physical: The bank highlights Thailand's vulnerability to climate change and emphasises the need for investments in climate-resilient infrastructure.
• Regulatory: The World Bank supports the Thai government's efforts to streamline regulations and improve market access for new technologies.
• Technology: The bank advocates increased investment in low-carbon technologies and renewable energy.

Good also highlighted the importance of sustainable urban development in driving the low-carbon transition. Strategic investments in urban infrastructure could spur decarbonisation and adaptation while creating more sustainable, liveable, and competitive cities.

Private sector partnerships focused on low-carbon transport developments could generate $2 billion (around 73 billion baht) annually, helping to reduce carbon emissions from one of Thailand's highest-emitting sectors.

The World Bank has established a Regional Centre for Global Knowledge and Cooperation in Thailand, offering three platforms: sustainable finance, sustainable cities, and innovation. The organisation is also preparing a climate and country development report for Thailand to assist the government in policy development and encourage investor decision-making.

In the next two years, Thailand will host the annual meetings of the World Bank and the International Monetary Fund, providing a significant opportunity to showcase the country's potential in sustainable development.

As Thailand navigates this crucial transition, the World Bank has pledged to help the country balance its environmental goals with continued economic growth.