Thailand's Ministry of Finance outlines low carbon financing initiatives backed by USD 200 million World Bank loan and carbon market partnerships

Thailand's Ministry of Finance outlined financing and market initiatives to support clean energy investment, develop transparent carbon credit trading and mobilize private capital for low carbon industries. The update followed discussions between Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas and World Bank Group President Ajay Banga during the 2026 International Monetary Fund and World Bank Group Annual Meetings. Under the Low Carbon Cities and Carbon Market Development Project, the World Bank is providing a USD 200 million loan to the Export-Import Bank of Thailand, backed by a Thai sovereign guarantee through the ministry. The financing will support energy service companies investing in clean energy and energy efficiency improvements for public-sector assets. Krung Thai Bank will aggregate, verify and monetize emissions reductions, while the Stock Exchange of Thailand is developing an auction and price discovery mechanism for carbon credits that have completed applicable validation, verification and issuance processes. Further cooperation will explore financial and carbon market support for businesses, particularly small and midsize enterprises, adapting to new technologies and standards. PTT, Krung Thai Bank and the Department of Climate Change and Environment are also developing blended finance mechanisms for the I-SPARK low carbon industrial platform in Map Ta Phut-Rayong, covering low carbon energy, shared infrastructure and specialty, bio-based and circular industries.