Thailand could unlock major economic gains by accelerating climate‑smart development, according to a new World Bank assessment released in Bangkok. The report warns that the country faces escalating climate threats but says targeted investments in adaptation, emissions reduction and green industries could help Thailand achieve its long‑term goal of becoming a sustainable high‑income economy.
The analysis shows that without stronger climate action, rising floods, extreme heat, water shortages and coastal erosion could shrink Thailand’s GDP by 7–14% by 2050. But the World Bank notes that shifting to cleaner energy, improving transport efficiency and strengthening climate resilience would lower costs, boost energy security and enhance the country’s competitiveness.
Thailand already has a foothold in several green export sectors — from eco‑efficient air conditioners to solar components and electric vehicles — yet these products still make up less than 10% of total exports. The report suggests that easing market barriers, improving skills and encouraging innovation could lift green exports by 2–3% of GDP by 2030.
World Bank officials emphasized that climate‑aligned growth could create new industries and high‑quality jobs, especially as global investors increasingly prioritize low‑carbon economies. They also highlighted the country’s vulnerability, noting that the Chao Phraya basin and key agricultural and industrial zones face mounting risks from floods, drought and coastal erosion.
Investing in flood protection, water management, climate‑smart farming and cooling technologies could raise Thailand’s GDP by up to 5% by 2050, while strengthening resilience for vulnerable communities. The report estimates that Thailand will require USD 219 billion in climate‑related investment over the next 25 years — a level the World Bank says is achievable through carbon pricing, fiscal reforms and private‑sector financing.
The findings come from the World Bank’s Country Climate and Development Report series, which helps governments identify strategies that support both economic development and climate goals.
Source: World Bank