Like many emerging countries undergoing rapid economic development, Thailand has a very high rate of energy use. It is currently almost twice the amount of the majority of European countries and up to three times higher than the average of Latin American countries. Production of electricity, which is still largely of fossil origin (64% from gas and 20% from coal) leads to considerable greenhouse gas emissions.

As part of the Paris climate Agreement, Thailand has undertaken to diversify its sources of energy and to develop solar and wind power, as well as power from biomass and waste processing. It is aiming for a 30% reduction in energy intensity by 2036.

AFD is supporting this ecological transition through a credit line granted to Kasikorn Bank to finance energy efficiency projects. The objective is to reduce the quantity of energy consumed in private and commercial buildings. AFD is also providing guidance to the bank in identifying projects and improving its practices in green finance.

The dramatic growth of cities has generated an increasing need for urban transportation. An ambitious plan calls for the renovation, modernization and extension of public transportation networks in the capital as well as in and between other cities and regions of the country.

Along with the various private and public operators of the sector, AFD is organizing discussion workshops on the technical and financial aspects related to transportation. The first was held in Bangkok, on improving urban integration through transportation. The second was held in Phuket, where a tramway project is under review.
 

Our agency in the Thai capital also plays a regional role for AFD in Asia:

• In Burma and Laos, it supervises the AFD offices there.
• It houses the activities of Proparco, the AFD subsidiary for the private sector, which covers several Southeast Asian countries.
• It hosts a team of technical experts on finance and energy.
• It organizes professional training sessions for the entire Southeast Asia region.
• It develops development cooperation activities in third countries with its Thai counterpart, the Thailand International Cooperation Agency.