Recently, the global warming phenomenon has escalated into what is called a “heated earth,” prompting countries, businesses, and individuals to become increasingly alert. As climate change impacts intensify and affect all levels of society, the question arises: what should Thailand urgently address amid this shifting trend, and where do we stand in this transition? These insights were shared at the 2026 Climate Finance Tracker: Time to Walk the Talk seminar and are summarized here.
Dr. Orasaran Monumon, Senior Specialist at the World Bank Financial Institutions Sector, said the World Bank views climate change within the context of development. Thailand aims to become a high-income country by 2037, requiring an average annual economic growth of about 5%.
However, if Thailand does not adequately address climate change, economic growth may fall short of expectations, with potential GDP losses of 7-14% by 2050. The extent of this impact depends on how much Thailand invests in climate change issues, including both mitigation—reducing climate change causes—and adaptation—adjusting to climate impacts.
According to the World Bank’s latest 2025 Country Climate Development Report, Thailand may need to increase climate-related investments to about 220 billion US dollars over the next 25 years (approximately 2.4% of cumulative GDP). This includes around 96 billion USD for mitigation, 105 billion USD for adaptation, and over 20 billion USD for investments that yield dual benefits, such as nature-based solutions like mangrove reforestation that help adapt to climate shifts and prevent coastal erosion.
The report emphasizes that climate change investment should not be seen solely as a cost but as an opportunity to create new prospects and enhance Thailand’s economic competitiveness. For instance, mitigation investments can develop green export industries such as electric vehicles (EVs) and energy-efficient cooling systems. The key challenge is securing funding from both public and private sectors to scale up these industries.
As industries strive to transition their business structures to green models, this process requires both time and capital. The financial sector thus plays a crucial role in facilitating this transition. “Chananan Supadul,” Director of Strategic Institutions at the Bank of Thailand (BOT), explained that the BOT aims to see financial institutions, including banks, act as vital mechanisms to enable real, measurable transitions. They have observed growing sustainable lending targets.
Regarding impact measurement, major banks have Transition Plans that set targets for greenhouse gas emissions in their loan portfolios and strategies for reduction. These plans involve collecting data from clients and devising overall approaches for gradual business adaptation, following the principle of “starting timely but avoiding rushing that causes setbacks.”
Currently, the BOT is working on four main climate finance initiatives:
While banks earn income from lending interest, businesses and organizations face higher costs to adapt to climate change. What is their perspective on this transition? Kamolpan Laksana, Sustainability Development Executive Officer at TMBThanachart Bank (ttb), shared that over the past 2-3 years, business clients have become aware of regulations in Thailand and abroad but often ask, “How do we actually reduce carbon emissions or lower costs while being environmentally responsible?”
This poses a challenge for banks to develop and seek solutions tailored to each industry while considering the organization’s broader strategic picture. They start by assessing impacts through steps of Assess, Analyze, Prevent, and Provide Solutions based on client needs and smooth transition plans, alongside analyzing the bank’s loan portfolio by industry sectors.
To provide solutions, banks apply a Green Financing Framework to clearly measure results. This year, it has been updated to align with the Thailand Taxonomy guidelines, increasing opportunities for clients to access green financing solutions, provided these adhere to principles that reduce climate change impacts and prevent greenwashing.
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