Readiness Support for the Accreditation of Kasikornbank, Updating of Thailand’s Country Programme, Development of Climate Finance Strategy, and Design of Blended Circular Economy Financing Facility

The proposal outlines a 24-month program implemented by the Global Green Growth Institute (GGGI) to address gaps in Thailand's climate finance architecture. Key objectives include supporting Kasikornbank's GCF accreditation, updating the 2017 Thailand Country Programme (TCP) to align with the updated NDC and Long-term Low Greenhouse Gas Emission Development Strategy, and creating a national climate finance strategy. A central component is the design of the Thailand Circular Economy Financing Facility (T-CEFF), a blended finance mechanism intended to de-risk investments in Municipal Solid Waste to Energy (MSW2E) and bioenergy projects, targeting a USD 200 million loan portfolio by 2025. The project also aims to refine the National Designated Authority's (NDA) no-objection procedure to better accommodate private sector proposals.

• Thailand currently lacks accredited Direct Access Entities (DAEs), which limits the ability to leverage public sector finance through blended investments with private financial institutions.
• The Thailand Country Programme (TCP), first developed in April 2017, is outdated and does not reflect the updated Nationally Determined Contribution (2021-2030) or the Mid-century, Long-term Low Greenhouse Gas Emission Development Strategy from October 2021.
• The existing no-objection (NOL) procedure is primarily tailored for public sector grant proposals and needs revision to accommodate private sector entities and various funding instruments.
• Kasikornbank, Thailand's second largest lender by assets, has been identified as a primary candidate for DAE accreditation due to its fiduciary standards and experience in green lending, including a target of USD 100 million annually.
• Domestic financial institutions in Thailand are highly risk-averse toward circular economy investments, particularly Municipal Solid Waste to Energy (MSW2E) and bioenergy, due to a lack of non-recourse project finance and high collateral requirements.
• The proposed Thailand Circular Economy Financing Facility (T-CEFF) aims to use blended finance to support a USD 200 million loan portfolio by 2025, focusing on 10-20 projects in circular economy sub-sectors.
• Modern waste management infrastructure projects in Thailand have significant mitigation potential; a single 500-ton/day project can mitigate up to 1,000,000 tCOeq over 20 years, primarily through methane avoidance from landfills.
• Thailand's energy sector is the primary driver of greenhouse gas emissions, accounting for 71.65% of total emissions as of 2016.

APA

Green Climate Fund (2022). Readiness Support for the Accreditation of Kasikornbank, Updating of Thailand’s Country Programme, Development of Climate Finance Strategy, and Design of Blended Circular Economy Financing Facility. https://www.greenclimate.fund/sites/default/files/document/thailand-gggi.pdf

Chicago

Green Climate Fund. Readiness Support for the Accreditation of Kasikornbank, Updating of Thailand’s Country Programme, Development of Climate Finance Strategy, and Design of Blended Circular Economy Financing Facility. 2022. https://www.greenclimate.fund/sites/default/files/document/thailand-gggi.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Readiness Support for the Accreditation of Kasikornbank, Updating of Thailand’s Country Programme, Development of Climate Finance Strategy, and Design of Blended Circular Economy Financing Facility |date=29 June 2022 |url=https://www.greenclimate.fund/sites/default/files/document/thailand-gggi.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2022readiness, author = {{Green Climate Fund}}, title = {{Readiness Support for the Accreditation of Kasikornbank, Updating of Thailand’s Country Programme, Development of Climate Finance Strategy, and Design of Blended Circular Economy Financing Facility}}, institution = {Green Climate Fund}, year = {2022}, month = jun, url = {https://www.greenclimate.fund/sites/default/files/document/thailand-gggi.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }