Thailand Secures $200 Million World Bank Loan for Low-Carbon Cities
Thailand has secured a US$200 million World Bank loan to fund clean‑energy projects and low‑carbon city development, channelled through EXIM Bank with a Finance Ministry guarantee. The initiative will upgrade energy efficiency in public buildings and industrial zones while supporting SMEs, farmers and communities in transitioning to a green economy. Additional agreements with Krungthai Bank and PTT will prepare a just‑transition roadmap and explore carbon‑market mechanisms.
The government said it is drawing on World Bank financing of US$200 million for clean‑energy investment and low‑carbon city development, aiming to guide SMEs, farmers and communities toward a green economy. Ms. Lalida Perisriwattana, deputy government spokesperson, explained that the administration is building on cooperation from the IMF–World Bank Annual Meetings 2026 to promote clean‑energy investment and low‑carbon city growth while ensuring a fair transition for SMEs, workers, farmers and communities.
On 17 October 2026, officials presented cooperation approaches and signed several memoranda of understanding to drive investment and develop environmental‑finance mechanisms. Ms. Lalida said Deputy Prime Minister Ekniti Nitithanpraphas met with Ajay Banga, President of the World Bank Group, on the topic "Low Carbon Cities and Energy Security." The agreement includes a low‑carbon city project and carbon‑market development backed by a US$200 million loan from the World Bank, routed through the Export–Import Bank of Thailand (EXIM Bank) with a guarantee from the Ministry of Finance. The loan will finance energy‑efficiency improvements in public buildings and industrial areas using an energy‑service company (ESCO) model, where participating agencies pay for the service over time, reducing upfront costs. Pilot activities will focus on Bangkok and Thai industrial estates, covering rooftop solar installations, electrical‑system upgrades in schools, health centers, district offices and public lighting to cut long‑term energy expenses.
Meanwhile, Natural Resources and Environment Minister Suchart Chomklin assigned the Department of Climate Change and Environment to sign a cooperation agreement with Krungthai Bank to draft Thailand’s Just Transition Roadmap, supported by an initial 20 million‑baht grant to study measures and financial mechanisms that help SMEs, workers, farmers and communities adapt to clean technology and new economic standards.
Additionally, the Department of Climate Change and Environment, PTT and Krungthai Bank signed a partnership under the I‑SPARK project to explore blended‑finance mechanisms and develop carbon credits, piloting low‑carbon industry in Rayong Province and promoting a transparent, credible carbon market to create future environmental‑investment opportunities.
Ms. Lalida concluded that the government aims to turn clean‑energy investment into economic opportunity, lower energy costs, boost competitiveness and ensure energy security, while protecting SMEs, workers and the public affected by the transition so Thailand can move toward a low‑carbon economy fairly and sustainably.
