Charting a smarter ocean future for Thailand

Thailand’s coastal and marine resources are vital engines of growth. From pristine beaches that attract millions of tourists each year to the Eastern Economic Corridor that supports production and trade, the country’s “blue economy” involving 23 coastal provinces is estimated to contribute around 30 percent of  Thailand’s GDP and one-fourth of the nation’s employment.

As Thailand prepares to host the World Bank Group – IMF Annual Meetings in October 2026, this is an incredible opportunity for Thailand to highlight its rich oceanic resources, and its leadership in blue economy innovation and sustainable blue value creation.

However, this value is increasingly under threat. Over the past three decades, approximately 30% of Thai coastlines have experienced around 126.4 million square meters of coastal erosion, leading to an estimated land value loss of more than US$1.3 billion, excluding other economic losses and damages. Without mitigation, projections suggest that coastal erosion could wipe away land stretching 1.3 kilometers inland along a 200-kilometer stretch of the old Sukhumvit Road within 20 years—the equivalent of about one-sixth of the Bangkok metropolis’s land area. Other critical pressures include declining marine fisheries, pollution, over-development, and conflicts in resource utilization.

Marking World Oceans Day with a blue financing solutions package

Unlocking the full potential of Thailand’s blue economy—and safeguarding more than 3,000 kilometers of coastline—will require a bold vision, supported by a national strategy, innovative financing tools, and strategic investments in erosion prevention, sustainable tourism, and waste management, paving the way for a more resilient ocean future.

Currently, Thailand’s Department of Marine and Coastal Resources (DMCR) operates with a limited annual budget of US$30-40 million—a challenging fraction of what’s needed to fully harness the blue economy’s benefits. Yet, this also presents an opportunity: with strategic partnerships, innovative financing (such as blue bonds), and integrated planning, Thailand can significantly scale up its marine conservation and sustainable ocean industries.

Everything starts with a good plan. The World Bank, through the PROBLUE multi-donor trust fund, is stepping in to support the Thai Government in developing a National Marine Spatial Planning (MSP) Framework (forthcoming report) to assess the situation, resolve conflicts in resource utilization, develop policy and technical options, lay-out participatory plans, as well as evaluate economic impacts from integrated seascape management across key sectors. 

Bridging the funding gap

The capital markets present a significant opportunity, fueled by investor interest in environmental and social issues, and a growing belief that sustainable investments can offer competitive financial returns. Environmental, Social, and Governance (ESG) assets are expected to reach, accounting for more than a third of the projected $140.5 trillion in total global assets under management. In Thailand, the Thai Bond Market Association recorded THB 818 billion in outstanding ESG bonds at the end of 2024. The introduction of blue bonds, or debt instruments earmarked for ocean-friendly investments, is the next logical step in closing the funding gap. Such bonds offer a way to support blue economy development, safeguard natural resources, while generating financial returns. 

The World Bank Group is employing a coordinated approach that engages both the public and private sectors. The World Bank, including Treasury’s Sustainable Finance Advisory Program, is working closely with the Public Debt Management Office and Ministry of Natural Resources and Environment, to assess the nation’s blue financing readiness and set environmental objectives, sector scopes, screening criteria, and investment pipelines—with the aim  of paving the way for the issuance of sovereign blue bonds to finance ocean-related activities. This is part of a broader initiative to integrate ocean health into the country’s economic development and build investor confidence in the bankability of blue economy projects. 

The International Finance Corporation (IFC), the World Bank Group’s arm for private sector development, is working with private sector companies such as TMB Thanachart Bank and Krungsri Bank to support the issuance of blue bonds and the IFC’s investment in Indorama as the first blue loan to a global plastic resin manufacturer. 

Scaling up innovative financing

With the right mechanisms in place, Thailand has the potential to use innovative financing instruments like blue bonds to fund ocean-related activities. Through consultation with a diverse array of stakeholders and data gathering, the World Bank identified three priority thematic areas for blue financing: 

• Coastal erosion protection and mangrove restoration. There is substantial value at risk, particularly in such high-economic areas as Bangkok and the Eastern Economic Corridor (EEC). To address this challenge effectively, nature-based solutions which integrate structural designs that mimic natural processes with large-scale mangrove restoration, offer a more resilient approach to coastal protection. The World Bank Group’s upcoming Country Climate and Development Report (CCDR) for Thailand highlights that the economic benefits of a nationally integrated coastal protection plan along the coastline would significantly outweigh the associated costs, reinforcing the case for scaled-up, strategic investment in nature-based approaches.
• Sustainable tourism and ecosystem conservation. Thailand’s tourism sector is heavily reliant on marine and coastal ecosystems, highlighting the need to balance conservation efforts with economic growth. Initiatives such as the Resilient Seascape Management Project proposed by the DMCR can aid in coral reef restoration and sustainable tourism management.
• Wastewater and waste management in coastal and island communities. Coastal provinces and islands, many already facing erosion and high tourist volumes, are also experiencing increasing challenges in wastewater and solid waste management. A national investment program is needed to scale circular economy solutions, improve waste treatment, and reduce marine pollution.

With these investments, Thailand will lay the groundwork to not only protect its coastlines and marine and coastal resources but also future proof its growth by unlocking blue economic value. The nation is well-poised to chart a course towards a smarter and more sustainable ocean future.

Source : VOXeu