Recently, the global warming phenomenon has evolved into what is called a “heating planet,” prompting countries, businesses, and individuals to become more aware. As climate change problems intensify, their impacts increasingly affect all levels of society. Amid these changing trends, what should Thailand urgently address, and where do we stand in this transition? These questions were explored at the seminar “Effective Climate Mitigation Finance: From "Why" to "How",” held during the 2026 Climate Finance Tracker: Time to Walk the Talk event organized by the Climate Finance Network Thailand (CFNT). This article summarizes the key insights.
Dr. Orsaran Monumorn, Senior Financial Sector Specialist at the World Bank, stated that the World Bank views climate change within the development context. Thailand aims to become a high-income country by 2037, requiring an annual economic growth rate of about 5%.
However, if Thailand does not adequately address climate change, economic growth may fall short of expectations, potentially reducing GDP by 7-14% by 2050. These impact estimates depend on how much Thailand invests in climate change-related areas, including mitigation (reducing climate change) and adaptation (adjusting to climate impacts).
According to the latest 2025 Country Climate Development Report from the World Bank, Thailand may need to increase climate-related investments by approximately 220 billion US dollars over the next 25 years (about 2.4% of cumulative GDP). The report estimates 96 billion USD for mitigation, 105 billion USD for adaptation, and over 20 billion USD for investments offering dual benefits, such as nature-based solutions like mangrove forest restoration that aid climate adaptation and coastal erosion prevention.
The report emphasizes that climate change investments should not be seen solely as costs but as opportunities to create new prospects and enhance Thailand’s economic competitiveness. Many mitigation investments could occur across green export industries, such as electric vehicles (EVs) and energy-efficient cooling systems. The key challenge is sourcing funds to scale these industries, ideally from both public and private sectors.
As industries seek to transform their business structures to be greener, this transition requires time and capital. The financial sector thus plays a crucial role in enabling and measuring this shift. “Chananan Supadul,” Director of Strategy Department at the Bank of Thailand (BOT), explained that the BOT wants financial institutions and banks to serve as key mechanisms to realize and measure this transition. They have observed progress through increasing sustainable finance lending targets.
Regarding measuring results, major banks have Transition Plans specifying greenhouse gas emission targets within their loan portfolios and strategies to reduce these emissions. This involves data collection from clients and comprehensive planning for gradual business adjustments following the principle of “starting early but not rushing to stumble.”
Currently, the BOT is focusing on four main climate finance areas:
While banks earn income from interest on loans, businesses and organizations face higher costs to adapt to climate change. What is their perspective on this transition? Kamolpan Laksana, Executive Officer and Head of Sustainable Development at TMBThanachart Bank (ttb), shared that in the past 2-3 years, business clients have become aware of regulations domestically and internationally but often ask, “How do we actually implement carbon reduction or reduce costs while responsibly protecting the environment?”
This challenge requires banks to develop and seek solutions suitable for each industry, considering the organization’s broader strategic picture. They start by analyzing impacts in all dimensions through the steps Assess, Analyze, Prevent, and Provide Solutions for clients, based on clients’ needs and ensuring a smooth transition. Simultaneously, banks analyze their loan portfolios by industry sectors.
To provide solutions, banks use a Green Financing Framework to clearly measure outcomes. This year, they adjusted it to align with the Thailand Taxonomy guidelines to enhance clients’ access to green financing solutions. However, these must adhere to principles that reduce climate change impacts to prevent greenwashing.
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