Thailand’s ‘Net Zero’ goals still distant, CFNT urges government to close funding gap
Thailand’s path to Net Zero by 2050 remains far off, with CFNT reporting a funding gap of THB 7 trillion per year and offering strategic suggestions for closing it to attract foreign investment.
Climate Finance Network Thailand (CFNT) has released a new report, “Financing NDC 3.0: Challenges and Opportunities Toward Net Zero 2050,” which highlights significant challenges Thailand faces in meeting its Net Zero target by 2050. The report stresses the urgent need for increased investment and better planning to avoid falling short of these crucial environmental goals.
The report, led by Thanida Lawseriwanich, Head of Research at CFNT, revealed that Thailand needs to secure USD 224.05 billion (approximately THB 7 trillion) in total investment to meet its Net Zero target by 2050. From 2035 onwards, Thailand will need to invest at least THB 700 billion annually to drive the necessary climate actions. Without this funding, the country risks missing its targets for reducing greenhouse gas emissions.
CFNT also pointed out major gaps in the current NDC 3.0 plan, particularly in terms of project-level details. While the plan lists technologies capable of reducing emissions, it lacks clear projects that can be evaluated for cost-effectiveness, especially in key sectors like energy and transportation.
The report also highlighted the inadequate focus on adaptation to the impacts of climate change. Most of the investment is directed at mitigation (reducing emissions), but there are few clear plans and budgets for addressing the effects of global warming that are already being felt in the country.
The report also noted discrepancies in the land use, land-use change, and forestry (LULUCF) targets. Thailand’s goal of using forests as the main carbon sink conflicts with reality, as the country has experienced continuous deforestation between 2015-2025.
CFNT proposed three key strategies to help improve the NDC 3.0 plan and make it more credible for foreign investors:
- Increase transparency with a Climate Finance Tracker: The government should create a Climate Finance Tracker to systematically track climate-related funds. This would help identify gaps in financing and reassure international investors of Thailand’s genuine need for climate action funding.
- De-risking strategies for private sector involvement: The government should shift from being a major investor to a facilitator of financial innovations, such as blended finance, which can reduce risks for private companies transitioning to a green economy. The government should also expedite the enactment of the Climate Change Act to mobilise funding and support vulnerable enterprises.
- Strengthen multilateral cooperation: In addition to existing funds like the Green Climate Fund (GCF), Thailand should seek new international funding mechanisms, such as the Just Energy Transition Partnership (JETP) and the Tropical Forest Forever Facility (TFFF), to accelerate progress towards the 2050 goal.
The CFNT report concluded that credibility and transparency are essential if Thailand is to attract the significant foreign investment required to meet its Net Zero objectives. The government must present a clear operational plan, transparent funding data, and specific, actionable projects to reduce risks and build investor partnerships that will help Thailand achieve Net Zero.
Thailand is at a crucial crossroads. With the right reforms and a proactive approach, the country can still secure its place as a global leader in climate action and achieve its Net Zero ambitions by 2050.
