Rayong:Thailand is actively working with the World Bank Group to promote investment in low-carbon cities and develop a carbon credit market. This initiative aims to attract private sector funding for clean energy, reduce reliance on subsidies, lower energy costs, enhance competitiveness, and create jobs.
According to Thai News Agency, during the 2026 IMF-World Bank Annual Meetings at the Queen Sirikit National Convention Center, a discussion took place under the theme 'Low Carbon Cities and Energy Security - Building System at Scale.' Deputy Prime Minister and Minister of Finance, Ekniti Nitithanprapas, emphasized the need for Thailand to accelerate investment in reducing economic vulnerability due to recent energy volatility. He highlighted a strategic shift towards investing for long-term resilience rather than relying on subsidies.
The Thai government is implementing a strategy titled "Stabilize Today, Transition Now, Invest for Tomorrow," which focuses on investing in advanced energy technologies to enhance competitiveness and create quality jobs. This involves expanding cooperation with the World Bank and the private sector to mobilize funding for clean energy projects, with a focus on tangible results rather than just fundraising.
Ekniti mentioned a US$2.4 million grant from the World Bank's Partnership for Market Implementation (PMI) program, supported by Krung Thai Bank, to facilitate a transition to a low-carbon economy. This grant will help develop renewable energy projects and improve energy efficiency by making funding more accessible. The government also aims to expand cooperation with the World Bank Group and the International Finance Corporation (IFC) to attract additional private investment.
Ajay Banga, President of the World Bank Group, stressed the importance of credibility in the carbon credit market, noting that investors need assurance of verifiable emission reduction results. A trusted central mechanism is essential for sustainable carbon credit trading, which supports investment in emission reduction.
The World Bank Group president also pointed out that improving energy efficiency yields economic benefits, such as reduced business costs, capital for expansion, and savings for local authorities to enhance public services. It also creates jobs through improvements in buildings and energy systems. Expanding these projects will require private investment to supplement government funding.
Payong Srivanich, President and CEO of Krungthai Bank, outlined three key approaches of the collaboration ensuring a just transition to a low-carbon economy, developing low-carbon cities and carbon credit markets, and expanding industrial carbon reduction investment through the I-SPARK project in Rayong province.
For low-carbon city projects, the mechanism involves upfront funding from energy service companies and private investors for projects like rooftop solar installations and LED streetlights. Government agencies will repay the investment based on verifiable energy savings, reducing the initial investment burden for the government.
Additionally, a national digital data platform will be developed for measuring, reporting, and verifying greenhouse gas emission reductions. Verified results will be developed into carbon credits, connecting with domestic and international buyers. The World Bank Group will support the framework, while Krung Thai Bank and related agencies will collaborate on developing the data system and market mechanisms, ensuring that carbon emission reduction creates economic value and attracts continuous investment.