Thai climate capitalism takes root

Green tech startups are emerging at a rapid rate in Thailand, but they must navigate a world of bureaucracy and lack sufficient funding, writes Suchit Leesa-nguansuk

- Suchit Leesa-nguansuk

Thailand's green tech startups are emerging, in line with the country's ambitious greenhouse gas reduction targets and the global momentum towards environmental, social and governance standards.

However, some obstacles need to be addressed for these startups to thrive.

In 2024, Thailand attracted US$355 million in private green investments, ranging from solar, wind and green cement to sustainable fuels and biomass, according to a research paper prepared by Bain & Co.

Southeast Asia could unlock $38 billion in economic gains from the green transition by 2030, according to the study.

POLICY MOMENTUM

"Thailand has set clear but challenging greenhouse gas emission reduction goals. Achieving them requires not only strong policy support, but also a robust innovation drive," said Kittisak Prukkanone, director of the division of strategy and international cooperation at the Department of Climate Change and Environment.

The country aims to be carbon neutral by 2050 and net-zero by 2065.

Although the Thai government introduced several incentives and policies to support climate tech development, the sector continues to face significant challenges, including regulatory hurdles, a shortage of skilled talent, and limited access to funding, which have hampered the growth of this sector.

A flexible yet stable policy framework to support innovations is essential, he said. As a result, there is a need to improve policy tools and enhance support mechanisms for startups, said Mr Kittisak.

He said a draft law on climate change next year should become a critical tool in the long term, driving demand and increasing funding for climate tech development, helping Thailand achieve its related long-term goals.

In addition, the Digital Economy Promotion Agency and National Innovation Agency already support green tech startups.