BOI Enhances Clean Energy, an Opportunity that Comes with the Sustainability
The change in the United States’ clean energy policy underPresident Donald Trump’s policy, including the withdrawal from the Paris Agreement, has affected the United States’ investment and implementation of clean energy policies as well as the global goal of reducing greenhouse gas emissions. However, a large European economic country like the United Kingdom including China, have still placed the importance on clean energy and imposed measures on trade barriers so called the Carbon Border Adjustment Mechanism (CBAM), which Thailand needs to closely monitor.
Clean Energy Investment Trend Moves to Asia
Morgan Stanley’s Research sees that Trump’s clean energy policy will likely cause more than 500 billion US Dollars of investment to move out of the United States, especially, the mutual funds that focus on investing in clean energy and sustainability that are starting to shift to the Asian region, which will become a rising star because many countries in Asia such as China, Japan, and South Korea, are accelerating their developments of the renewable energy resources to increase the stability in clean energy and reduce the dependability on fossil fuel by developing the offshore wind power. Data from the Global Wind Energy Council predicts that by 2030, the offshore wind power generation capacity in the Asia-Pacific region will increase sixfold, including solar power. This will make Asia become the world’s largest solar power market, with India, China, and Indonesia becoming the top three largest markets to meet the increasing global electricity demands.
Thailand, The Clean Energy Hub in ASEAN
Thailand has implemented a policy to support the reduction of greenhouse gas emissions and set a goal to achieve carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065, to create a low-carbon industry. Meanwhile, Thailand’s Power Development Plan 2024-2037 (Power Development Plan or PDP2024) has set a goal to increase the proportion of clean energy to no less than 50 percent to respond to the transition to green industries. Currently, Thailand produces clean energy domestically, proportionally accounting for 26 percent of total electricity generation capacity. From the SDG Index ranking in 2023, Thailand was rated in the 43rd place of the world and the 1st in ASEAN, with the highest score in the region for clean energy progress.
Clean energy readiness is the most prominent strength in inspiringly attracting foreign investors to invest and set up production bases in Thailand. As for government agencies like the BOI, which provides the investment promotions, the type of business that promotes the investment in clean energy is inclusive to support the transition of the industrial sector to green investment, emphasize the creation of an ecosystem for energy sustainability, strengthening Thailand’s ability to rely on itself and reduce the risk of future energy crises. According to the statistics on the requests for promotions in clean energy businesses from 2015 to March 2025, there were more than 2,900 projects applying for the promotions, with a combined value of more than 560 billion Baht.
In addition, the BOI has also enhanced entrepreneurs to improve their production efficiencies by turning to renewable energy in accordance with the measures to upgrade the industry to Smart and Sustainable Industry. From 2015 to March 2025, there were more than 2,400 projects, accounting for the investment value of more than 220 billion Baht. This is considered a promotion of green business operations throughout the supply chain from upstream to downstream that will help increase the opportunities, reduce risks, and enhance the competitiveness of businesses to meet the needs of sustainable business operations.
