DPM and Minister of Finance Ekniti Nitithanprapas recently sat down with World Bank Group President Ajay Banga to discuss "Low Carbon Cities and Energy Security — Building Systems at Scale, Mobilizing Private Capital, Creating Jobs." Their exchange centered on how financial and market mechanisms can drive green investment and strengthen Thailand's competitiveness on the world stage.

In line with its climate commitments under the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement, the Thai government is ramping up public-private collaboration to scale green funding and bolster energy security.

At the heart of this effort is Thailand's Low Carbon Cities and Carbon Market Development (LCC) initiative, which aims to build a transparent, internationally recognized carbon trading framework. Backed by a US$200 million (roughly THB7 billion) World Bank loan to EXIM Thailand, guaranteed by the Ministry of Finance, the project is empowering Energy Service Companies (ESCOs) to scale up clean energy investments and improve energy efficiency across public assets.

Three collaborative initiatives are driving real progress, linking business readiness, carbon market development, and industrial investment:

∙ Financial & Carbon Market Mechanism Study: Krung Thai Bank (KTB) and the Department of Climate Change and Environment are exploring financial and carbon market tools to help SMEs meet global standards, while ensuring a just transition for workers along the way.
∙ LCC Carbon Market Infrastructure: The Stock Exchange of Thailand (SET) is building transparent auction and price-discovery mechanisms alongside credit aggregation support. Major players, including Grab, ACEIS Electric and Power, DriverAI, and Thai Airways, have stepped up as anchor buyers for verified carbon credits.
∙ Blended Finance for Low-Carbon Industry: PTT, KTB, and the Department of Climate Change and Environment are developing a blended finance tool for the I-SPARK platform in Map Ta Phut–Rayong, designed to attract private investment into clean energy and bio-circular industries.

Beyond guiding Thailand toward its net-zero goals, this collaborative push promises real, tangible benefits: lower energy costs, new jobs, fresh business opportunities, and sustainable, long-term economic growth.

Source: PR Thai Government