Hat Yai flooding: Intensifying impacts of climate change in Thailand
The recent flooding in Hat Yai reflects the heightened climate-related risks associated with the phenomenon of Atmospheric Rivers (ARs), in which global warming enables the atmosphere to retain greater amounts of water vapor. This has increased both the intensity and frequency of ARs.
In November 2025, Hat Yai's accumulated rainfall rose 86.3% year-on-year, and daily rainfall on some days reached 370 millimeters, exceeding the total monthly rainfall recorded in November 2020 and 2022.
Thailand still lacks sufficient funding to address the impacts of climate change.
The Thai government has only 15%–18% of the funding required to cope with the impacts of climate change. Currently, the government invests an average of 29.027 billion THB per year in climate adaptation projects, while UNESCAP estimates that Thailand needs as much as 165–192.043 billion THB per year.
Moreover, although government ESG bonds are an important tool that can directly help close this financing gap, they have not been effectively leveraged to address climate-related challenges.
The government has issued Sustainability Bonds and Sustainability-Linked Bonds, which together account for more than 65% of Thailand's outstanding ESG debt securities. However, most of the proceeds have been allocated to COVID-19 relief and debt restructuring, as well as investments in the Orange Line and Pink Line mass transit projects, rather than climate adaptation.
Climate Resilience Bonds help the government close the financing gap for addressing climate change.
The Tokyo Metropolitan Government (TMG) is preparing to issue the world's first certified Climate Resilience Bonds, valued at approximately 50 billion yen (USD 330 million), to address the impacts of natural disasters and climate change.
The funds raised will be allocated to strengthening the city's preparedness for increasingly severe storms and flooding caused by climate change. This includes coastal protection projects, riverbank and floodway reinforcement, and the development of advanced stormwater drainage systems.
Conventional government bonds typically do not specify clear objectives related to climate adaptation. In contrast, Climate Resilience Bonds enable governments to raise funds directly for adaptation efforts, supported by internationally recognized standards that ensure transparent monitoring and verification of fund usage.
KResearch believes that the Thai government should accelerate the issuance of Climate Resilience Bonds, following Japan's example, to enhance early warning systems, flood protection infrastructure, and investment in modern disaster management technologies. These measures would help reduce economic losses and lessen the number of people affected by increasingly severe natural disasters in the future.
Hat Yai flooding: Intensifying impacts of climate change in Thailand
The recent flooding in Hat Yai reflects the heightened climate-related risks associated with the phenomenon of Atmospheric Rivers (ARs), in which global warming enables the atmosphere to retain greater amounts of water vapor. This has increased both the intensity and frequency of ARs.
In November 2025, Hat Yai's accumulated rainfall rose 86.3% year-on-year, and daily rainfall on some days reached 370 millimeters, exceeding the total monthly rainfall recorded in November 2020 and 2022.
Thailand still lacks sufficient funding to address the impacts of climate change.
The Thai government has only 15%–18% of the funding required to cope with the impacts of climate change. Currently, the government invests an average of 29.027 billion THB per year in climate adaptation projects, while UNESCAP estimates that Thailand needs as much as 165–192.043 billion THB per year.
Moreover, although government ESG bonds are an important tool that can directly help close this financing gap, they have not been effectively leveraged to address climate-related challenges.
The government has issued Sustainability Bonds and Sustainability-Linked Bonds, which together account for more than 65% of Thailand's outstanding ESG debt securities. However, most of the proceeds have been allocated to COVID-19 relief and debt restructuring, as well as investments in the Orange Line and Pink Line mass transit projects, rather than climate adaptation.
Climate Resilience Bonds help the government close the financing gap for addressing climate change.
The Tokyo Metropolitan Government (TMG) is preparing to issue the world's first certified Climate Resilience Bonds, valued at approximately 50 billion yen (USD 330 million), to address the impacts of natural disasters and climate change.
The funds raised will be allocated to strengthening the city's preparedness for increasingly severe storms and flooding caused by climate change. This includes coastal protection projects, riverbank and floodway reinforcement, and the development of advanced stormwater drainage systems.
Conventional government bonds typically do not specify clear objectives related to climate adaptation. In contrast, Climate Resilience Bonds enable governments to raise funds directly for adaptation efforts, supported by internationally recognized standards that ensure transparent monitoring and verification of fund usage.
KResearch believes that the Thai government should accelerate the issuance of Climate Resilience Bonds, following Japan's example, to enhance early warning systems, flood protection infrastructure, and investment in modern disaster management technologies. These measures would help reduce economic losses and lessen the number of people affected by increasingly severe natural disasters in the futu
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