ADB Launches Climate Finance Program in Thailand to Accelerate Green Investment

Mr. Morris highlighted the critical need for Thailand to increase green finance flows due to its extreme vulnerability to climate change.

During his visit to Thailand from 24 to 28 June, Scott Morris, Asian Development Bank (ADB) Vice-President for East and Southeast Asia, and the Pacific, along with ADB Country Director Anouj Mehta, joined hands with Ministry of Natural Resources and Environment's Department of Climate Change and Environment (DCCE) Director General Phirun Saiyasitpanich to launch a new climate finance-focused program.

The technical assistance project, named Accelerating Climate Finance in Thailand, aims to bolster Thailand's efforts to expedite finance flows from all sources—public, private, and capital markets—towards achieving its net-zero targets. Key components of the program include policy support to foster innovative finance approaches, development of roadmaps and pilot projects in challenging sectors like electric mobility, resilient cities, and biodiversity, and capacity building on innovative climate finance.

Mr. Morris highlighted the critical need for Thailand to increase green finance flows due to its extreme vulnerability to climate change. "We will support Thailand in developing innovative finance tools such as national derisking finance mechanisms and sustainability-linked incentive bonds," he stated. "ADB's renewed sovereign program in Thailand integrates technical assistance, capacity building, and financing support to achieve these goals."

Mr. Phirun expressed optimism about ADB's involvement, emphasizing the importance of leveraging ADB's sector-focused ideas and finance mechanisms to achieve Thailand's climate targets. He stressed the need for diverse financial instruments, including public and private investments supported by international mechanisms.

The visit signifies a heightened focus on climate-related initiatives by ADB in Thailand, aligning with Thailand's aim to achieve carbon neutrality by 2050. This expansion builds on existing climate-focused financing initiatives such as the Green, Social, and Sustainable Bonds (GSS + Initiative) and the Bio-Circular Green Growth Initiative.

During the visit, Mr. Morris also represented ADB in a significant signing ceremony with Agence française de développement, committing €1 million to support the Nature Solutions Finance Hub for Climate and the Environment. Managed by ADB, this hub aims to advance nature-based solutions across Asia and the Pacific, further enhancing regional climate resilience efforts.