Clean Energy Finance and Investment Roadmap of Thailand
Thailand has adopted ambitious clean energy targets to meet its long-term climate goals, committing to reach carbon neutrality by 2050 and net zero greenhouse gas (GHG) emissions by 2065. Transforming Thailand’s energy system, alongside broader development objectives, is critical to meeting these goals as the energy sector accounts for 69% of Thailand’s total GHG emissions.
The Clean Energy Finance and Investment Roadmap of Thailand (“the Roadmap”) outlines key actions to unlock finance and investment in two clean energy sectors: (i) renewable power, with special attention to small-scale renewable power systems; and (ii) energy efficiency in buildings, with a focus on cooling applications. The two sectors were selected in close consultation with the Department of Alternative Energy Development and Efficiency (DEDE) of the Ministry of Energy of Thailand. The Roadmap provides a comprehensive overview of the progress to date, policy context and challenges to mobilise near-term finance in those sectors, as well as estimates of the finance needs to reach Thailand’s clean energy plans. The report also includes a roadmap action plan, suggesting non-prescriptive recommendations and actions that the Government of Thailand, financial institutions, energy service companies, academia and the international development community active in the country could undertake to foster clean energy investments in Thailand.
Unlocking finance and investment for energy efficient cooling and buildings
This chapter presents current trends in energy efficiency in Thailand’s building and cooling sectors and examines the policy and regulatory framework and targets for energy efficiency in buildings and cooling appliances. It also provides an overview of the key business models for energy efficiency projects in Thailand, as well as an analysis of the main financing barriers and regulatory challenges. Based on a set of case studies of financing instruments deployed in other countries, the chapter also presents a series of potential financing models that could be explored in Thailand to mobilise financing and investment for energy efficiency buildings and cooling systems, such as energy savings insurance, green bonds, on-bill financing, bulk procurement and green mortgages. The chapter ends with recommendations for the Government of Thailand and key Thai stakeholders across three key pillars: (i) financial support; (ii) policy, regulation and governance; and (iii) capacity building, data collection and awareness-raising.
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