Thailand launches first blue bonds to support sustainable coastal and ocean economy

Thailand boasts 23 coastal provinces and over 3,000 kilometres of coastline, with marine resources playing a crucial role in the economy, contributing to almost 30% of the GDP and about 26% of employment. However, according to the latest report on Innovative Blue Financing Solutions in Thailand by the World Bank, these resources are under growing pressure from coastal erosion, pollution, overexploitation, and a lack of funding. Over the past three decades, approximately 30% of Thailand’s coastline has been affected by erosion, leading to an economic loss of over US$1.3 billion.

In response, Thailand is accelerating efforts to unlock the potential of its blue economy, with strong technical support from the World Bank, including the first-ever issuance of blue bonds by the Thai government. These bonds are intended to raise funds for the sustainable development of marine and coastal activities.

The Public Debt Management Office (PDMO) has already issued green bonds, social bonds, and sustainability bonds to help Thailand meet its sustainable development goals (SDGs). The blue bond is a new debt instrument designed to support the government’s operations and policies in line with SDGs related to oceans, seas, and marine resources. Thailand is currently studying the issuance of such bonds.

The Innovative Blue Financing Solutions in Thailand report further highlights the potential of blue bonds for the country, driven by growing investor interest and strong policy momentum. As of 2022, the total value of environmental, social, and governance (ESG) bonds circulating in Thailand reached 659 billion baht (US$20.3 billion), marking an increase of over 35% from the previous year.

Melinda Good, Director of the World Bank for Thailand and Myanmar, shared her vision for Thailand’s role in hosting the World Bank Group-IMF Annual Meetings in October 2026, providing a unique opportunity for the country to showcase its potential in marine resource abundance and leadership in blue economy innovation on the global stage.

“We are proud to support the Thai government’s vision of driving sustainable development, focusing on long-term benefits for both the well-being of its people and the environmental sustainability of the country’s marine ecosystems, through the creation of jobs and new lifestyles that foster the conservation of Thailand’s marine ecology for future generations,” said Good.

The World Bank, in collaboration with the PDMO and the Ministry of Natural Resources and Environment, has consistently worked together to develop the Marine Spatial Planning (MSP) framework for national marine areas. This collaboration is supported by the PROBLUE Fund, a grant fund from developed countries to promote sustainable, integrated development of marine and coastal resources within healthy marine ecosystems.

The framework aims to assess the current situation, design solutions for resource usage conflicts, and create policies with a strong emphasis on stakeholder participation. It will also evaluate the economic impact of integrated coastal and marine spatial management. This framework will serve as a crucial tool for guiding future public and private sector investments, focusing on economic growth while ensuring environmental sustainability.

The World Bank has also held discussions with the PDMO on innovative investment strategies to support the development of Thailand’s blue economy. This includes providing academic assistance and investment support focusing on coastal erosion prevention, mangrove restoration, Nature-based Solutions (NbS), promoting sustainable tourism, and developing Thailand’s Ocean Accounting system to support marine spatial planning based on data and to foster efficient investments in the blue economy.

At the same time, the World Bank has supported Thailand’s Low Carbon Cities (LCC) initiative, which aims to help cities reduce greenhouse gas emissions and promote investment in green infrastructure. The restoration of mangrove forests to prevent coastal erosion is also part of this effort, as it can lead to the creation of blue carbon credits linked with mechanisms under the LCC project. This helps reduce reliance on public funding and opens up opportunities for the private sector to invest in the sustainable expansion of coastal erosion prevention.

These investment projects and strategies reflect Thailand’s commitment to the sustainable development of its blue economy, in line with the country’s long-term environmental and economic goals.