Thailand and World Bank Push Low-Carbon Cities to Cut Energy Costs
Thailand and the World Bank showcased a $200 million project to cut energy costs, attract investment and create jobs through clean energy and carbon markets.
The story in focus
Thailand and the World Bank Group presented a US$200 million Low Carbon Cities project to cut energy costs and attract private investment. The initiative supports rooftop solar and efficiency upgrades, aims for 180 MW of renewable capacity, and is developing a carbon credit market with Thai banks and companies.
- The World Bank-supported Low Carbon Cities project is worth US$200 million.
- The project is expected to support up to 180 megawatts of renewable-energy capacity and save about 448 million units of electricity annually.
- Thailand is developing a carbon credit market, with Krungthai Bank aggregating eligible credits and the Stock Exchange of Thailand supporting auctions.
Project aims to cut bills and fossil fuel reliance
Thailand and the World Bank Group highlighted a US$200 million Low Carbon Cities and Carbon Market Development Project during the 2026 IMF-World Bank Group Annual Meetings in Bangkok. The project helps public buildings, cities and industrial estates invest in rooftop solar and energy-efficient technologies, reducing electricity bills and dependence on imported fuels.
The project is expected to support up to 180 megawatts of renewable-energy capacity and save approximately 448 million units of electricity each year — roughly the annual electricity use of 100,000 Bangkok-area households.
Carbon market and private finance
The initiative also aims to develop a carbon credit market. Companies can buy credits linked to independently verified emission reductions, creating extra revenue for renewable and efficiency projects. Krungthai Bank will aggregate eligible credits for sale, and the Stock Exchange of Thailand will support transparent auctions.
Thai Airways, Grab, ACEIS Electric and Power, and DriverAI were recognized as prospective anchor buyers. The World Bank is providing US$2.4 million through its Partnership for Market Implementation to support Thailand’s Department of Climate Change and Environment on carbon-pricing policies and transition measures.
Industrial expansion opportunity
Looking ahead, PTT’s I-SPARK initiative in Rayong could expand the model to a major industrial center. PTT estimates potential investments exceeding US$5 billion and opportunities to support more than 13,000 jobs by 2035. The World Bank Group said it could explore further support, including through the International Finance Corporation, subject to assessment and approvals.
What is the expected renewable-energy capacity and electricity savings from the Low Carbon Cities project?
The project is expected to support up to 180 megawatts of renewable-energy capacity and save approximately 448 million units of electricity each year, roughly equal to the annual electricity use of 100,000 Bangkok-area households.
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