Aligning Economic Prosperity with Thailand’s Climate Ambitions’ seminar

Can Thailand grow its economy and cut emissions at the same time? That was the central question explored at the seminar ‘Aligning Economic Prosperity with Thailand’s Climate Ambitions’ held on 17 July 2025 at Best Western Hotel, Bangkok. Co-hosted by GIZ’s IMPROVE project, the Office of Transport and Traffic Policy and Planning (OTP) and Office of Industrial Economics (OIE), the event brought together policymakers, industry experts and international partners to examine the country’s progress and its challenges in greening the transport sector.

The seminar offered a timely discussion on how Thailand could pursue its climate goals without losing sight of economic realities. One message stood out: advancing sustainable transport isn’t just about meeting emissions targets; it requires policies that are realistic, economically viable, and responsive to shifts in the domestic automotive industry, as the sector navigates a complex transition.

Punya Chupanit (right), Director-General of the OTP and Daniel Bongardt (left), GIZ Cluster Coordinator for Infrastructure and Mobility and IMPROVE Project Director

Opening remarks by Punya Chupanit, Director-General of the OTP, underscored Thailand’s commitment to its Nationally Determined Contribution (NDC) targets. He emphasised the importance of advancing fuel efficiency policies, promoting low-emissions vehicles and enhancing data systems to support evidence-based policymaking. Daniel Bongardt, GIZ Cluster Coordinator for Infrastructure and Mobility and IMPROVE Project Director, reaffirmed GIZ’s long-standing partnership with Thailand and stressed the value of global knowledge exchange adapted to local contexts.

Advancing transport decarbonisation through the IMPROVE project

Discussions highlighted the IMPROVE project’s ongoing work, including a fuel efficiency policy study, development of the FE Data Portal, and international collaboration. Since 2023, IMPROVE has supported a strategic roadmap and policy tools to cut transport emissions and guide informed decision-making.

A highlight was the presentation of the Technical Study on Fuel Efficiency for Light-Duty Vehicles (LDVs), by Thitipat Dokmaithet from the Thailand Automotive Institute (TAI). The study showed that although Thailand’s average fleet emissions target is set at 92.53 gCO₂/km, the current excise tax system, though not mandatory, has effectively influenced automakers’ behaviour. The study benchmarked Thailand’s fuel efficiency policy against major automotive producers such as the USA, Japan, China and Germany, and recommended closer alignment with international fuel economy standards to maintain export competitiveness.

Comparison of CO₂ emissions from passenger cars in different countries. Source: ICCT, 2024

Comparison of CO₂ emissions from pickup trucks in different countries. Source: ICCT, 2024

Adapting policies for a changing economy and emissions pathways

The study also pointed to a sharp drop in new vehicle registrations, contrary to earlier projections. This shortfall is attributed to reduced consumer purchasing power and stricter lending criteria; only two in ten auto loan applications are approved. Consumer hesitation, especially over vehicle types such as Internal Combustion Engine (ICE), Hybrid Electric Vehicle (HEV), and Battery Electric Vehicle (BEV), has further delayed purchases.

These trends have led to revised emissions forecasts, with the transport sector expected to be lower than previously projected. Nevertheless, to meet the sector’s 45.6 MtCO₂ share of Thailand’s NDC target, improvements in vehicle efficiency (especially in high-emissions categories like pickup trucks) are essential.

Turning the curve: Industry resilience and policy levers

Panel Discussion-Turning the Curve: Automotive Industry Resilience and the Road to Decarbonisation

The panel discussion, ‘Turning the Curve: Automotive Industry Resilience and the Road to Decarbonisation’, featured speakers from the TAI, OTP, OIE and GIZ. Moderated by Sunthorn Tummuntong (TAI), the panel stressed that despite economic challenges, Thailand would be able to meet its climate goals with strong policy direction, inter-agency coordination and market-based incentives.

Thailand’s role as a global automotive hub, exporting to over 170 countries, gives it strategic leverage. Aligning domestic regulations with key export markets, such as Australia’s New Vehicle Emissions Standards (NVES), is vital – especially for pickup trucks. Drawing lessons from the EU and Germany, panellists highlighted how regulatory tools such as CO₂ fleet standards, phased targets and penalties have sustained EV market growth even amid subsidy cuts. The clear message: policy consistency and long-term investment signals are crucial for driving both industry innovation and consumer confidence.

Data-driven policy through the FE Portal

The seminar concluded with the launch of the Fuel Efficiency Data Portal, led by Mr Papondhanai Nanthachatchavankul, IMPROVE Project Manager. Designed to integrate emissions data from the Department of Land Transport (DLT) and OIE, the portal provides emissions insights by vehicle type and model, with customisable dashboards and agency-specific access.

This digital infrastructure supports data-driven policymaking, facilitates inter-agency collaboration and helps track high-emissions vehicle segments, particularly within LDVs. It is expected to play a central role in shaping Thailand’s decarbonisation efforts going forward.

A shared path forward

The seminar closed with the OTP reaffirming its commitment to the IMPROVE project. With technical expertise, strategic planning, and collaborative partnerships, GIZ Thailand continues to support Thailand’s transition to a low-carbon, resilient transport system. By integrating international best practices with local action, GIZ is helping drive meaningful change in support of Thailand’s climate ambitions.