THAILAND has obtained a US$200 million loan (approximately 6.68 billion baht) from the World Bank to support investments in clean energy and develop low-carbon cities, PPTVHD36 said today (Oct. 18).
This World Bank loan, being channeled through EXIM Bank and guaranteed by the Finance Ministry, is intended to also help SMEs, farmers, and local communities reduce costs as they transition toward a green economy.
Ms. Lalida Peritwiwatana, deputy spokesperson for the Prime Minister’s Office, said the government is developing collaborations established during just-concluded 2026 IMF–World Bank annual meetings. Several cooperation frameworks and Memoranda of Understanding (MOUs) were presented and signed yesterday to drive investment and develop financial mechanisms for environmental initiatives.
Deputy Prime Minister/Finance Minister Ekniti Nitithanprapas held discussions with World Bank Group President Ajay Banga on the topic of “Low-Carbon Cities and Energy Security.” The discussions covered projects for low-carbon cities and the development of carbon markets, backed by the US$200 million loan to Thailand.
The objective of this facility is to support investments for energy efficiency at public buildings and industrial zones.
The initiative will utilise the Energy Service Company (ESCO) model, where ESCOs invest in upgrading energy systems, while participating entities pay for these services over the long term—thereby alleviating the burden of high upfront capital investment.
A pilot initiative is being launched in Bangkok and areas under the Industrial Estate Authority of Thailand. It includes the installation of rooftop solar panels and the upgrading of electrical systems in schools, healthcare facilities, district offices, and public lighting infrastructure, with the goal of reducing energy costs over the long term.
Meanwhile, Minister of Natural Resources and Environment Suchart Chomklin has tasked the Department of Climate Change and Environment with entering into a partnership with Krungthai Bank to develop a “Thailand Just Transition Roadmap.” An initial fund of 20 million baht has been allocated to study measures and financial mechanisms to assist SMEs, the workforce, farmers, and local communities in adapting to clean technologies and new economic standards.
Furthermore, a partnership has been formed by the Department of Climate Change and Environment, PTT, and Krungthai Bank under the “I-SPARK” project. This initiative focuses on exploring blended finance mechanisms and developing carbon credits to pilot low-carbon industries in Rayong province. It also aims to foster a transparent and credible carbon market, thereby creating future investment opportunities in the environmental sector.
CAPTION:
Top and Front Page: World Bank Group President Ajay Banga, centre, with Deputy Prime Minister/Finance Minister Ekniti Nitithanprapas, right. Photo – PPTVHD36
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