‘Thailand has comparative advantages where it makes sense to move now. Those comparative advantages also exist in the water sector. That’s why we’re combining this with the Water 2030 platform and agenda. This report will show how climate and water futures are critical to the overall sustainable development trajectory,’ said Melinda Good, World Bank Country Director for Thailand and Myanmar, during the ‘Climate and Water Futures’ forum at Sustainability Expo 2025 (SX2025) in Bangkok.
While the Bangkok metropolitan area is home to around 25% of Thailand’s population, it contributes more than 30% of the nation’s Gross Domestic Product (GDP). Yet, according to Statista, Thailand ranks just behind Vietnam, Egypt, and Bangladesh in terms of population exposure to annual flood risk. The statistic underscores the urgency for Bangkok to focus on climate resilience and water management.
One sign of worsening climate challenges is the city’s increasing number of ‘rain bombs’ – powerful downdrafts produced by thunderstorms, not cyclones, capable of causing severe localised flooding and damage.
Climate and Development Report
At the forum, the World Bank launched Thailand’s Climate and Development Report – a timely release as Thailand prepares to host the World Economic Forum in exactly one year’s time.
‘We’ll have the whole economic world here and be able to show Thailand’s vision for this part of its future to the world,’ said Good.
Thailand aims to achieve high-income country status by 2037, requiring consistent annual GDP growth of around 5%. However, the report warns that without timely climate reforms and investments, this trajectory could be derailed. The cost of inaction could be steep: physical climate impacts could reduce GDP by 7-14% by 2050.
‘This is important if you subscribe to Thailand’s vision of becoming a more inclusive and sustainable society,’ said Kim Alan Edwards, World Bank Senior Economist. ‘To successfully navigate global megatrends such as climate change and build industries of the future – including sustainable food production, green manufacturing, and sustainable tourism – Thailand’s response to climate change will be critical.’
Edwards added that Thailand could move faster to seize green growth opportunities. The country is already a world leader in exporting eco-friendly air conditioners, a major player in sustainable manufacturing, and an emerging hub for electric vehicles and components. Still, there remains vast potential to capitalise further on global demand for green and climate-adaptive technologies.
Investment and Carbon Pricing
Edwards stressed the need for reforms and investments to accelerate Thailand’s transition. While carbon pricing is essential, he noted, it is insufficient on its own to drive transformation. A transparent policy framework is needed to reduce uncertainty for the private sector.
The report’s recommendations include market reforms in the power sector, greater investment in EV charging infrastructure, the implementation of energy efficiency mandates, farmer education programmes, refocusing agricultural subsidies, and expanded reforestation efforts.
According to the World Bank, Thailand will need an additional USD 219 billion in climate-related investment over the next 25 years. Carbon pricing could generate extra revenue equivalent to nearly 1% of GDP, but broader fiscal reforms – including adjustments to VAT, personal income tax, and other levies – are needed to finance public climate spending while maintaining fiscal stability.
No One Left Behind
Dr Phirun Saiyasitpanich, Director-General of the Department of Climate Change and Environment, underscored the report’s findings on the importance of social protection to support vulnerable groups.
‘How can the vulnerable play a role in this adaptation? How can we echo the voices of our youth?’ he asked.
Dr Phirun noted that youth representatives had submitted their demands to his department, emphasising that ‘their voices are not of the future, but of the present.’ They have called for climate change to be included in all school curricula and for greater opportunities to collaborate with government and the private sector in strengthening their climate capabilities.
This call aligns with the message from Dr Chula Sukmanop, Secretary-General of the Eastern Economic Corridor (EEC) Office, who highlighted the importance of public awareness. ‘When everyone is aware of water, it will be something manageable,’ he said.
EEC’s Sustainable Transition
The EEC partnered with the World Bank in producing the report. The region has shifted from oil-and-gas-based industries to environmentally friendly manufacturing while prioritising co-existence with local communities.
‘What we do now will bear fruit in the next five years,’ said Dr Chula. ‘We must ensure that the EEC has enough water resources to meet industrial demand. We call that water balance. We’ve established a committee to oversee water management and cooperation between the public and private sectors. Water might sound like a ‘chill’ topic, but it will become a hot issue if supply falls short.’
As Good emphasised, the World Bank Thailand Climate and Development Report quantifies the economic opportunities tied to decarbonisation and green, high-tech manufacturing. ‘That’s where we get to the futures part – where the economic opportunities lie.’