PROJECT DESCRIPTION
The operation addresses two mutually reinforcing market and institutional failures that currently impede Thailand’s ability to unlock its significant mitigation potential in urban systems. Public Sector Organizations (PSOs), including large municipal authorities such as the Bangkok Metropolitan Administration (BMA) and national entities such as the Industrial Estate Authority of Thailand (IEAT), face fiscal, procurement, and regulatory constraints that prevent them from financing economically viable clean-energy upgrades, despite strong financial returns and growing public-sector demand. At the same time, Thailand lacks a unified system for carbon crediting and monetization, resulting in low participation of cities and firms in crediting schemes and the loss of potential climate-finance revenues. The project therefore introduces a dual-pillar model that enables the financing of distributed investments through a Financial Intermediary (EXIM Bank) and the creation of a national Verified Emission Reduction Program under Krungthai Bank (KTB), functioning as a Coordinating and Managing Entity (CME).Component 1: Clean Energy Upgrades in Public Assets (IBRD: US$185 million; CF: US$10 million): Component 1 establishes a standardized, performance-based financing model through which EXIM Bank on-lends to clean-technology service providers (e.g., ESCOs) that implement eligible clean-energy upgrades on public assets. These upgrades include rooftop, ground-mounted, and elevated solar PV installations; LED streetlighting; and energy-efficiency retrofits in public buildings. PSOs competitively select firms using uniform technical specifications, lifecycle value criteria, and digital MRV requirements. Firms then recover their investment through multi-year, performance-linked service payments made from PSO operating budgets, allowing upgrades to proceed without public borrowing or capital budgeting. Public investments supply the initial, verifiable batch of emissions reductions need
ADDITIONAL INFORMATION
https//projects.worldbank.org/en/projects-operations/project-detail/P514511