Water and climate: urgent issues, emerging opportunities

“Thailand has comparative advantages where it makes sense to move now. Those comparative advantages also exist in the water sector. And that's why we're combining this with the Water 2030 platform and agenda. This report will show you how climate and water futures are critical to the overall sustainable development trajectory,” World Bank Division Director for Thailand and Myanmar, Melinda Good, said during the “Climate and Water Futures” forum at Sustainability Expo 2025 in Bangkok.

While the Bangkok metropolitan area includes about 25% of the country's population, it contributes over 30% of Thailand's Gross Domestic Product (GDP). According to Statista’s survey on flood risk, based on the approximate number of people affected by annual floods, Thailand follows only Vietnam, Egypt and Bangladesh. This data itself shows the urgency of why Bangkok needs to focus on climate and water management.

One of the indications of the increasing intensity of climate issues for Bangkok is that the city is seeing many more rain bombs this year. They are not caused by any type of storm. A rain bomb is a downdraft produced by a thunderstorm that has the potential to cause serious damage.

Climate and Development Report

At the forum, the World bank also launched Thailand’s Climate and Development Report — a perfect timing and place, since Thailand will also host World Economic Forum in exactly one year from now.

“We'll have the whole economic world here and we'll be able to show Thailand's vision for this part of its future to the world,” said the World Bank Director for Thailand and Myanmar.

Thailand has a target of reaching high-income country status by 2037. The country’s GDP growth of 5% yearly is needed to reach that target. The report shows that the path can be difficult in the absence of timely climate reforms and investments. The risk of inaction on adaptation is large; the physical impacts of climate change could lower GDP by 7 to 14 percent by 2050.

“This is important if you subscribe to this vision of Thailand becoming a more inclusive and sustainable society. To successfully navigate global megatrends, including climate change, and to build industries of the future that include Thailand as the kitchen of the world, and industries like green manufacturing and sustainable tourism. The future of it will be completely bound up with how Thailand responds to climate change,” Kim Alan Edwards, World Bank Senior Economist, said during the snapshot of the report.

Edwards highlighted that Thailand could move more quickly to seize green growth opportunities. While the country is already the world’s leading exporter of eco-friendly air conditioners,  the one of world’s largest sustainable manufacturers, and is emerging as a production hub for EVs and components, the country has significant potential to further capitalize on growing international demand for green and climate-adaptive technology.

Investment and Carbon Pricing

Edwards reiterated the importance of reforms and investments for Thailand to move forward quick enough. The findings show that carbon pricing is important, but insufficient on its own to deliver the transformational change. Thailand needs a transparent framework to reduce private sector uncertainty. Among the recommendations are market reforms in the power sector, investment in charging infrastructure for EVs, implementation of energy efficiency mandates, strengthening farmer education, refocusing agricultural subsidies, and investment in reforestation.

According to the World Bank, Thailand needs another USD 219 billion in climate investment over the next 25 years. Carbon pricing could generate additional revenues of close to 1 percent of GDP, but Thailand still needs revenue reform — VAT, PIT, and other taxes — to help finance public climate spending needs and limit impacts on public debt.

No one left behind

The Director General of the Department of Climate Change, Dr. Phirun Saiyasitpanich, highlighted one of the findings from the report that social protection is critical to support the resilience of the vulnerable. “How can the vulnerable play a role in this adaptation? How can we echo the voices of our youth?”

Dr. Saiyasitpanich said that youth representatives have sent their demands to his department. “Their voices are not the voice of the future, but of the present. They are here now and want to be able to dictate their future, and factor their opinion into policy making. They also request to make climate change a part of every school curriculum. And they need support to be able to work with the government and the private sectors on activities that would strengthen their capabilities,”

Part of the demand also echoed what the Secretary-General of the EEC Office, Dr. Chula Sukhmanop, has said, that what Thailand needs to do is raise knowledge and awareness about water. “When everyone is aware of water, it will be something manageable.”

EEC was also one of the partners with the World Bank in producing the report. EEC has completely shifted from oil-and-gas-based industries on the Eastern Seaboard to environmentally friendly industries. It also prioritizes the co-existence with local communities. Good infrastructures and utilities are essential.

“What we do now will bear fruit in the next five years. We have to make sure EEC has enough water resources to meet the demand of the incoming industries. We call that water-balance. We set up a committee to oversee the water management and cooperation between public and private sectors. The topic of water might sound like something ‘chill’ and relaxed, but it will become a hot issue if we cannot provide enough supply.”

As Goodman mentioned, this World Bank Thailand Climate and Development Report puts numbers on economic opportunities associated with decarbonization and green and high-tech manufacturing. “So that's where we get to the futures part, where the economic opportunities are”.

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