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- Accelerating Green Finance: ADB’s new program aims to boost climate finance in Thailand, targeting net-zero emissions.
- Innovative Finance Tools: Development of derisking mechanisms and incentive bonds to attract private investment.
- Strategic Partnerships: Collaboration with Thailand’s DCCE and Agence française de développement to support nature-based solutions.
The Asian Development Bank (ADB) has launched a climate finance program in Thailand, partnering with the Ministry of Natural Resources and Environment’s Department of Climate Change and Environment (DCCE). The initiative, led by ADB Vice-President Scott Morris and Country Director Anouj Mehta, was announced during Morris’ visit to Thailand from June 24-28.
The project, titled “Accelerating Climate Finance in Thailand,” aims to expedite finance flows from public, private, and capital markets to help Thailand achieve its net-zero targets. It includes policy support for innovative finance approaches, development of roadmaps and pilot projects in sectors like electric mobility and resilient cities, and capacity building on climate finance.
“Thailand’s extreme vulnerability to climate change means that we need to accelerate green finance flows from private and public sectors. We will support Thailand in developing innovative finance tools such as national derisking finance mechanisms and sustainability-linked incentive bonds. We will also work with DCCE to develop bankable project models in challenging areas that are under-financed by private capital thus far,” said Mr. Morris. “ADB’s renewed sovereign program in Thailand is already integrating its technical assistance, capacity building, and financing support together for this end goal.”
The collaboration emphasizes the need for innovative financial mechanisms to meet Thailand’s climate goals. Mr. Phirun Saiyasitpanich, Director General of DCCE, highlighted, “We look to ADB to bring innovation and value with sector-focused ideas and finance mechanisms from its wide range of experiences. We also need to consider all instruments that will help us achieve both current and future national climate targets, particularly access to all types of finance, including public and private investment supported by international mechanisms.”
Related Article: ADB Calls for Papers on Climate Finance and Solutions to Address Gaps for Developing Countries
This visit underscores ADB’s commitment to enhancing climate-focused activities in Thailand, building on initiatives like the Green, Social, and Sustainable Bonds (GSS + Initiative) and the Bio-Circular Green Growth Initiative. The program’s goal is to help Thailand achieve carbon neutrality by 2050.
Additionally, Morris represented ADB in signing an agreement with Agence française de développement, which committed €1 million to support the Nature Solutions Finance Hub for Climate and the Environment. Managed by ADB, the hub will develop nature-based solutions across Asia and the Pacific.
ADB remains dedicated to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while continuing its efforts to eradicate extreme poverty. Established in 1966, ADB is owned by 68 members, including 49 from the region.