Bangkok: The Cabinet approved the low-carbon city initiative, empowering Exim Bank to secure funding and low-interest loans to kickstart the project in 2026, aiming for a carbon credit trading market worth US$34.5 million.

According to Thai News Agency, Mr. Siripong Angkasakulkiat, spokesperson for the Prime Minister’s Office, stated that the Cabinet approved the low-carbon city concept by allowing the Export-Import Bank of Thailand (Exim Bank) to borrow funds from various sources and then provide low-interest loans to the private sector. The goal is to encourage private sector participation in creating cities managed using renewable energy sources such as solar cells and LED streetlights, initially piloting within industrial estates and Bangkok.

The government aims to promote a carbon credit trading market of approximately 1 million tons of carbon by 2026, potentially reducing greenhouse gas emissions by 2.3 million tons and generating a carbon credit trading value of approximately US$34.5 million. This will enable Thailand to move towards becoming a low-carbon city as targeted, and encourage the public and private sectors to work together to reduce greenhouse gas emissions.

The Cabinet also extended measures to promote electric vehicles (EV3.0-EV3.5) to align with the current situation. This includes extending the registration period for electric vehicles in Thailand, improving production methods for export and domestic sales through government subsidies, and valuing the use of domestically produced raw materials such as batteries and various components.