The Industrial Estate Authority of Thailand (IEAT) has secured a US$100 million (approximately 3,100 million baht) loan from the World Bank to transform the country’s industrial estates into low-carbon hubs. The funding marks the first phase of a broader US$200 million initiative aimed at decarbonising heavy industry. Pilot projects at Map Ta Phut and Laem Chabang are expected to cut 2.33 million tonnes of CO2 over ten years.

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The financial framework was approved in principle by the Cabinet on 9 December 2025. The World Bank will lend through EXIM Thailand, with funds channelled to Energy Service Companies (ESCOs) and contractors. These groups will deploy solar energy systems, large-scale battery storage and expanded electric vehicle charging infrastructure within the estates.

IEAT governor Sumet Tangprasert confirmed that the “Low Carbon City and Carbon Market Development” project is under way. The programme brings together the Ministry of Finance, the Department of Climate Change and Environment, EXIM Thailand and the World Bank to modernise green infrastructure. World Bank research identified Map Ta Phut and Laem Chabang as offering the greatest potential for significant greenhouse gas reductions and premium-grade carbon credit generation.

Under the scheme, IEAT will not directly bear investment costs. Instead, it expects to benefit from reduced utility overheads and revenue sharing from carbon credit sales. Emissions reductions will be verified through a real-time Digital MRV (Monitoring, Reporting and Verification) system to ensure compliance with international standards.

A dedicated Coordinating and Managing Entity (CME), likely to be managed by Krungthai Bank, will oversee carbon credit trading. IEAT has set a target for 2026 to bring the first one million tonnes of “Gold Standard” carbon credits to the global market. These credits are regarded as a high-quality benchmark and typically command premium prices.

The initiative is also designed to protect Thai exporters from the European Union’s Carbon Border Adjustment Mechanism (CBAM). By lowering industrial emissions and generating recognised carbon credits, Thailand aims to reduce exposure to potential EU carbon taxes. The project is further intended to attract foreign investors seeking green manufacturing bases.

“This is not merely an environmental endeavour; it is a structural redesign of the Thai industrial economy,” Sumet said. “It connects the world of green finance with real-world technology and global investment.”

The Nation reported that over the next decade, the programme is forecast to prevent 2.33 million tonnes of carbon emissions. Further phases of the US$200 million initiative are expected to expand decarbonisation efforts across additional industrial estates.

Pictures courtesy of The Nation - IEAT governor Sumet Tangprasert

Key Takeaways

• IEAT has secured a US$100 million World Bank loan as part of a US$200 million decarbonisation initiative.

• Pilot projects at Map Ta Phut and Laem Chabang aim to cut 2.33 million tonnes of CO2 over ten years.

• The scheme seeks to generate Gold Standard carbon credits and shield Thai exporters from EU CBAM measures.

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Adapted by ASEAN Now Nation 12 Feb 2026

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Unbelievable that money is still being wasted on this nonsense.

Meanwhile they burn sugarcane just give us money greendream is a joke

Thailand has been quite impressive in energy transition towards carbon neutrality. Among ASEAN, it is consistently in the top 3. Thailand has also improved its global Energy Transition Index from 60 out of 120 in 2024 countries to 51 in 2025. Meanwhile USA under Trump has dropped from 12 in the Index in 2024 to 17 in 2025 due to his strong opposition to carbon neutral.

6 hours ago, ozz1 said:

Meanwhile they burn sugarcane just give us money greendream is a joke

No one is giving anyone else any money, the World Bank is providing a loan that has to be repaid, just as all previous loans to Thailand have been.