New World Bank Group Support for Thailand to Scale Low-Carbon Cities and Carbon Markets

WASHINGTON, July 13, 2026 – The World Bank Group approved a new project to support Thailand in establishing a scalable platform that combines innovative financing with carbon market infrastructure to accelerate energy efficiency and renewable energy investments across the public sector, advancing the kind of smart development that lowers costs, mobilizes private capital, creates jobs, and strengthens energy security. The US$200 million Low Carbon Cities and Carbon Market Development Project (LCC) will help public organizations upgrade buildings, equipment, and other assets without having to pay the full investment cost upfront. Private energy service companies will finance and deliver the improvements, while public organizations pay for the services over time. This approach will mobilize private investment and make it easier to implement energy-efficiency and renewable-energy projects across the public sector. The project is expected to support job creation in clean-energy installation, operations and maintenance, energy services, digital carbon monitoring, and verification activities and generate at least 1,800 job-years during implementation, with additional employment opportunities anticipated as the model is replicated across Thailand. “Thailand is building more than individual clean-energy projects—it is creating a system that can turn many small and fragmented investments into a pipeline that can be financed and expanded nationwide,” said Melinda Good, World Bank Division Director for Thailand and Myanmar. “By bringing together public agencies, financial institutions, private investors, and carbon markets, the project will make energy upgrades easier to finance and replicate, reduce public-sector energy costs, and create new opportunities for Thai businesses and investors.” Through the project, the Export-Import Bank of Thailand will provide financing to qualified energy service companies to implement investments for participating public organizations, beginning with the Bangkok Metropolitan Administration and the Industrial Estate Authority of Thailand. Krungthai Bank will aggregate carbon credits and connect them with carbon markets, improving market access and generating additional revenues that can support future investments. The project reflects the leadership of Thailand’s Public Debt Management Office and the Department of Climate Change and Environment, together with close collaboration across government and the financial sector. Key partners include the Bank of Thailand, the Securities and Exchange Commission, the Stock Exchange of Thailand, the Thailand Greenhouse Gas Management Organization, the Program Management Unit on Area Based Development, the Comptroller General’s Department, and the Bureau of the Budget. Their contributions helped establish the financing, regulatory, and carbon-market foundations needed for the platform. The project will support rooftop solar systems and energy-efficiency upgrades across public buildings and industrial estates, including schools, healthcare facilities, district offices, and streetlighting. These investments are expected to install up to 180 megawatts of renewable-energy capacity and deliver approximately 448 gigawatt-hours of electricity savings annually, reducing operating costs for participating public organizations. By lowering emissions and creating a standardized model that can be replicated across cities and government agencies, LCC will help translate Thailand’s national carbon-neutrality and net-zero ambitions into investable projects at the local level. As Thailand prepares to host the October 2026 IMF-World Bank Group Annual Meetings in Bangkok, the project represents a flagship example of the country's partnership with the World Bank Group to deliver innovative development solutions that combine public investment, private-sector mobilization, and carbon-market innovation—offering a scalable model for other emerging economies pursuing sustainable and resilient growth. Visit our website: worldbank.org/thailandFollow us on Facebook and X: facebook.com/WorldBankThailand | x.com/WB_AsiaPacificSubscribe to our newsletter: Click here