Climate change in Thailand: Companies are facing dramatic changes!

Climate change in Thailand: Companies are facing dramatic changes!

Climate change is a hot topic that also has a major impact on Thailand. Today, December 5, 2025, the country faces crucial changes in the fight against this global challenge. How Bangkok Biz News reports, a new climate change law (P.R.B. Climate Change) is expected to come into force between 2026 and 2027. This law could have a massive impact on the survival of companies, especially small and medium-sized businesses, which often do not have the resources to adapt to the new regulations.

A core element of the law are mechanisms to control greenhouse gas emissions. These include an emissions trading system (ETS) and the introduction of a CO2 tax. Companies that do not adhere to the regulations must expect penalties. These new regulations make it clear that climate protection is also becoming increasingly important in economic life.

Climate risks in sight

An important research project led by Dr. Patiphan Saelim, from King Mongkut's University of Technology Thonburi, focuses on how Thai financial institutions are dealing with climate-related risks. The study analyzes the reporting of 17 banks regulated by the Bank of Thailand (BoT) and shows that there has been significant progress in climate data disclosure over the past three years. What is advanced here is the application of machine learning with the “Climate Bert” model, which has achieved an impressive accuracy of 98%. These steps are urgently needed as banks play a key role in financing green businesses.

But the challenges are enormous. The Nation Thailand reports that economic losses from climate change, particularly in the tourism sector, are already estimated at over 5 billion baht. Recurring floods, especially in the north, are compounding the problem. Dr. Phirun notes that in addition to the measurable economic damage, the emotional and psychological toll on affected communities is also severe.

Natural disasters and weather extremes

Looking across national borders, the United States has faced a dramatic increase in natural disasters over the past 10-20 years, causing over $36 billion in damages. Similar trends can also be observed in Asia and particularly in Southeast Asia. Typhoon Yagi claimed over 500 lives in the region and highlighted the need for flexible water management and robust adaptation strategies Thailand Sun.

In Thailand, average temperatures have increased since 1981, leading to increased evaporation and changing rainfall patterns. Forecasts indicate an increase in rainfall in the future, further increasing the risks of flooding. At the same time, there are already signs of more frequent droughts, particularly in the northeast and southern regions of the country.

It is clear that Thailand is facing a significant turning point. The challenges of climate change can no longer be ignored. This makes it all the more important that both the government and the private sector actively participate in solutions to ensure a sustainable future. Only with a common approach can the necessary adjustments be successfully implemented.