World Bank: Thailand's Green Manufacturing Can Drive Economic Growth and Job Creation
The World Bank highlights Thailand's potential to enhance its automotive sector and green manufacturing, projecting a significant rise in solar PV exports and job creation by 2035. Key reforms in competition, skills, and carbon pricing are essential for realizing these opportunities, with green manufacturing expected to boost GDP growth by 0.3 percentage points and create approximately 203,000 jobs. The report emphasizes the importance of aligning regulatory commitments with public-private collaboration to foster sustainable growth.
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The World Bank reports that Thailand's transition to electric vehicles (EVs) presents opportunities for its automotive sector, with the potential for solar PV exports to increase to 7.5% by 2030, reaching USD 45.3 billion by 2035. The air conditioning sector has successfully adopted energy-efficient R-32 refrigerants.
The expansion of green manufacturing could enhance GDP growth by 0.3 percentage points and create around 203,000 jobs by 2035. Comprehensive reforms, including carbon pricing and investment incentives, are crucial for Thailand to compete globally.
The shift to green manufacturing also addresses climate-related trade risks, with 78% of multinational firms planning to exclude high-carbon suppliers by 2025. Economic growth is projected to slow to 1.6% in 2026 but strengthen to 2.2% in 2027 as green industries develop.
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