Chaiwat Kovavisarach, chairman of the FTI’s Climate Change Institute, noted that Thailand emits about 350 million tonnes of carbon dioxide equivalent per year, with the energy and industrial sectors accounting for over 75%.
Although this represents less than 1% of global emissions, turning climate challenges into opportunities could strengthen the country’s long-term economic resilience. For Thailand, he added, a key challenge lies in the lack of systematic data and technical support.
Part of the institute’s mission is to help entrepreneurs — especially SMEs — access accurate information, develop carbon accounting, and adapt production processes to align with the country’s net-zero target.
“Today, we are taking a step further by acting as a central mechanism linking industry with the financial sector, securing transition finance, and providing information and advisory services to drive sustainable industrial transformation,” he said.
The FTI has partnered with the Thai Bankers’ Association in a strategic collaboration to support Thailand’s shift to a low-carbon industry through the creation of a first-phase transition finance mechanism worth over 5 billion baht.
This cooperation serves as a model for integrating finance and industry to advance Thailand towards a secure, competitive low-carbon economy.
The initiative aims to enhance the capacity of Thai entrepreneurs, especially SMEs, to access funding for environmentally friendly projects, promote clean technology adoption, and improve production efficiency.
This will reduce greenhouse gas emissions and help businesses adapt to the impacts of climate change — a systemic challenge affecting the economy, society, and public well-being.
Support for industry, one of the largest greenhouse gas emitters, will focus on two main areas:
- Mitigation – promoting the use of clean energy, upgrading to environmentally friendly machinery, investing in renewable energy, and adopting technology to improve production efficiency and reduce waste.
- Adaptation – designing production and logistics systems to be resilient to natural disasters, managing resources sustainably, and developing environmental restoration projects such as tree planting and carbon credit schemes.
“Transition finance under this partnership will be more than just a funding source,” Chaiwat said. “It will also cover advisory services, project feasibility assessments, and connections to carbon credit markets and international standards, ensuring maximum transparency and effectiveness in the use of funds.”