Thailand

Project title Sector SCP practice
AEMAS Utilities sector Product design for sustainability
Automotive SSCM Fabricated metals industry Sustainable Supply Chain Management
Efficient Air Conditioners / ASEAN SHINE Electrical equipment industry Eco-labels, Product design for sustainability
Lead Elimination Project Chemical sector Cleaner Production
Sustainable Freight and Logistics Sustainable Supply Chain Management
ZCR for Sustainable Tourism Service industry Product design for sustainability, Eco-labels

Focal point

Dr Wijarn Simachaya
Director General, Pollution Control Department
Ministry of Natural Resources and Environment

SWITCH-Asia RPSC

In Thailand, the SWITCH-Asia Programme policy support is implemented through a National Policy Support Component (NPSC). While this component has concluded in December 2014, in 2015 and 2016 the RPSC will potentially launch policy support in the country in forthcoming years as well. The NPSC has achieved a lot in terms of advancing eco-labeling (e.g. the Green Industry Mark), sustainable public procurement and increasing the awareness and action for SCP at the local government level, working with water efficiency in the tourism sector and other areas. A national SCP information portal was also launched with a variety of information on SCP in the country available here: www.scp-thailand.info/

Status of SCP policy framework

For over four decades, countries in Asia and the Pacific have been rapidly transforming from biomass-based to minerals-based economies. The efficiency of resource use has major implications for their economic growth, poverty reduction and for the environment. Thailand is one of the top ten resource consuming countries in the region.

Thailand is one of the foremost development success stories in Asia, with decades of sustained growth and impressive poverty reduction. Since the mid-1980s, the average real per capita income has roughly tripled (UNDP, 2009). Yet, the financial crisis in the late 1990s and political instability in 2006 caused an economic slowdown, severely affecting several sectors of the economy. Thailand’s economic structure has undergone major changes in the past four decades. Thailand’s economy, once largely agricultural, has been transformed by the development of the industrial and services sectors. The services sector is currently the largest contributor to GDP, with a near constant share in the range of 45-50% in recent years (Tangkitvanich and Onodera, 2008). Annual tourist arrivals had increased to over 14 million by 2007, and the tourism industry contributes around seven per cent of GDP (UNDP, 2009). Industrial growth was initially driven by labour intensive manufacturing activities such as textiles and clothing. However, more recently it has increasingly been supported by capital intensive industries such as automobiles, electronics and chemicals. Thailand’s export sector has played an important part in driving economic growth over the past three decades.

The country has also achieved most of its Millennium Development Goals, nearly all of them well ahead of deadline (UNDP, 2009). The incidence of poverty has fallen from 42% in 1988 to 8.5% in 2007. However, the benefits of Thailand’s success have not been shared equally by all and there are still over five million people living below the poverty line (UNDP, 2009). Some regions, particularly in the rural south and northeast, are lagging behind the rest of the country. A high proportion of the workforce is in informal employment, mostly working in the agriculture, transport, trade and construction sectors (UNDP, 2009). 

Growth in industrialization, urbanization and intensified agricultural production has relied extensively on the country’s natural resources. For instance, forest cover fell dramatically from 53 per cent in 1961 to 25 per cent in 1998. In the fisheries sector, over-harvesting of marine fisheries has reduced fishing yields by 90 per cent. Rapid industrial expansion and population growth have also degraded land and water quality, caused the loss of natural habitats, and generated increasing levels of air and water pollution (WB, 2011c). 

Economic and Social Development Plans

The National Economic and Social Development Plan (NESDP) is Thailand’s strategic framework for addressing its medium term development challenges. NESDPs are developed, implemented and evaluated by the Office of National Economic and Social Development Board (NESDB). The NESDB is responsible for drafting national SCP policies, indicators and evaluation criteria in Thailand. It also acts as a coordinator for SCP-related initiatives between the cabinet and implementing agencies.
Other key ministries involved in SCP work include the Ministry of Natural Resources and the Environment (MONRE) and the Ministry of Industry (MOI). 

SCP-related objectives have been incorporated into Thailand’s 10th NESDP (2007-2011), which strives for sustainable development via a ‘sufficiency economy’. The 10th NESDP contains five major strategic directions. One of these addresses development based on the sustainable utilization of diversified biological resources. The plan highlights that current production systems have been using natural resources in a wasteful manner. The plan suggests that current patterns of production and consumption behaviours need to be adjusted to reduce the impacts on the natural resource base.

The 10th NESDP therefore seeks to develop policies which promote sustainable production and consumption within society. This includes the creation of economic instruments, such as subsidies and environmental taxes, to encourage clean technologies and the economic utilization of resources in production activities (NESDB, 2007). Specific SCP-related targets in the 10th NESDP include:

  • Maintain forests at no less than 33% of the total land area;
  • The proportion of river basins and natural water sources with a water quality rating of fair or good to be at least 85%;
  • Reduce the rate of CO2 emissions per person by 5% from 2003 levels – CO2 emissions to be no higher than 3.5 tonnes per person annually;
  • Limit waste production in urban areas to no higher than 1 kg per person daily; and Ensure proper disposal of at least 80% of all hazardous waste from communities and industries.

SCP has gained even more prominence in the upcoming 11th NESDP (2012-2016). The overarching vision of this plan is to build a ‘happy society with equity, fairness and resilience’ (NESDB, 2010, page 8). The improvement of natural resources and environmental quality is one of seven key targets of the 11th NESDP. Some broad SCP-related principles are outlined in the plan as follows:

Conserve, restore and secure natural resources and the environment Shift the development paradigm and consumption behaviours towards an environmentally friendly society Improve ecological efficiency of the production and service sectors.

Resource consumption and production

Main Resource Consumption and Resource Efficiency Indicators (2010)

Population (millions) 69519
GDP (billion USD) 369709
GDP is in USD exchange rate based on year 2005 and deflated.
Source: UNSD database.
Subject Area Total Per person Per USD$ of GDP
Domestic Material Consumption, DMC
(tonnes, tonnes per capita, kgr per 1USD$)
519,251,584 7.82 8.22
GHG emissions
(kilotonnes,tonnes per capita, kgr per 1USD$)
421,227.84 6.34 3.18
Total Primary Energy Supply, TPES
(Petajoules, Gigajoules per capita, Megajoules per 1USD$)
4,916.36 74.04 41.51
Water Use
(Trillion litres, Kilolitres per capita, Litres per 1USD$)
127.00 1,912.59 922.17
Subject Area Indicator
Population density 2015 (UNESA 2012 revision), population per sq.km 131
GDP per capita (USD), 2013 WB 5,779.00
HDI Rank (2013) UNDP 0.722
Arable land (hectares per person) WB 2012 0.25
Forest cover in % (2010), UNSTATS 37
Material intensity (2010)UNEP 2.3
Per-capita energy use (kg of oil equivalent per capita) 2011, WB 697
Energy intensity (total primary energy consumption per USD of GDP) 2011, EIA 22,970.43
GHG intensity (2010) UNEP 1.87
CO2 emissions (metric tone per capita), 2010, WB 4.4
Number of Middle Class consumers % (2010), ADB 86
Number of people with income < 2USD/day (PPP, USD, %), 2010, ADB 11

Trends in Resource Consumption and Resource Efficiency Indicators (1970-2010)

DE: Domestic Extraction;
MI: Material Intensity of the economy;
MF: Material Footprint.
All other abbreviations explained in the table above

Panel a) shows Thailand’s GDP increasing by a factor of ten, followed by TPES (factor eight), DMC, GHG emissions, and population, which doubled. Panel b) shows that DE per capita had not grown even in proportion to DMC in gross terms, but that non-metallic minerals had, while almost one tonne per capita of fossil fuels was being extracted in 2010, were none was in 1970. Comparing DE to the MF per capita in panel c) indicates that Thailand’s DE was slightly less than its material requirements in gross terms, but is somewhat reliant on imports (direct or embodied) for fossil fuels and metal ores, while producing more biomass than locally required. Thailand is another country where the impact of the 1997 financial crisis is clearly discernible in its material flows. Panels d), e) and f) show per capita consumption increased on all measures. Panel d) shows a major step decrease in both MI and adjusted MI in the wake of the 1997 financial crisis. Panel e) indicates that both EI and adjusted EI have increased, indicating increased coupling of economic growth to energy use, however this has not translated to GHG emissions intensity, which decreased on both footprint based and conventional measures. Conventional indicators appear to overstate energy consumption and understate GHG emissions relative footprint based measures.

(Source: UNEP CSIRO Indicators for a Resource Efficient and Green Asia and the Pacific, 2015).

Key references relevant to SCP

UNEP's relevant activities

The information in the country profiles herein have been obtained through research with firsthand and secondhand sources. The information presented herein cannot be considered as official policy of governments or other official bodies. The SWITCH-Asia Programme cannot be held responsible for the content of the sites to which it provides links or for the availability of servers or links. Information is being continuously updated in order to maintain an up to date country profile. If you would like to contribute information for this profile or have any further comments, please send an email to: SWITCH-PSC@unep.org

Status

Introduction

  • There are around 3 million SMEs in Thailand, representing 98.5% of total businesses, contributing 37% to national GDP.
  • 80% of total employment is covered by SMEs.
  • Small enterprises focused on services have a share of 34.1% of total SME GDP, followed by manufacturing (30.9%), and trade and maintenance (27.7%)
  • A 2015 Deloitte study showed that 90% of financing for SMEs comes from personal savings, 62% from family and friends, and 54% from bank credit.[1] 58% of SMEs had no access to external financing.

[1] Deloitte. Digital Banking for Small and Medium-sized Enterprises" Improving Access to finance for the underserved. Retrieved from https://www2.deloitte.com/gu/en/pages/financial-services/articles/digital-bank-small-medium.html     

SME financing options

  • Commercial banks in Thailand are the main SME lenders over the last few years, increasing SME loans’ share of total loans from 28.1% in 2007 to 37.1% in 2012 (OECD, 2014).
  • THB 5 trillion (EUR 141,4 billion) in SME loans were outstanding in 2013/Q2, representing 32.8% of total loans.
  • Commercial loans amounted to THB 3.946 trillion (EUR 113 billion), of which 22.8% were disbursed to SMEs in the manufacturing sector (ADB, 2013).
  • Working capital loans continue to dominate in SME finance
  • The Market for Alternative Invest­ments provides a public listing alternative for SMEs with lower costs and less stringent requirements. Es­tablished by the Stock Exchange of Thailand, the plat­form allows SMEs to access long-term capital to fuel their growth.
  • The venture capital and private equity industry is small in Thailand and has focused on mergers and acquisitions and restructurings, rather than start-up and mezzanine finance.

Public support in Thailand

The Government of Thailand has demonstrated that political will and leadership can create regional champi­ons. Thailand’s major public support schemes for green finance are linked to the Energy Conservation Promo­tion Fund, implemented in 1992 to support energy ef­ficiency improvements and renewable energy develop­ment among others.

Funding and fiscal incentives are provided through three funds, the ENCON Fund, the ESCO Fund, and the Energy Efficiency Revolving Fund (EERF), to:

  • Stimulate the investment appetite of commercial banks and private sector actors to engage in developing and financing re­newable energy and energy efficiency projects
  • Create networks of financiers, ESCOs and developer
  • Provide training to banks in technical and policy support analyses

 

The government has enacted the Third SME Promotion Master Plan (2012-2016) that focuses on promoting SME development and strengthening competitiveness within a global trading context.

Challenges

  • Lack of access to financial institutions
  • Lack of information and advice from financial institutions
  • Weak legal and regulatory framework
  • Lack of awareness of the business case for green in­vestments
  • Perception of higher risk due to lack of in-country ex­amples of technology application, as well as lack of tech­nical and policy analytical evaluation constrain banks from lending to SMEs for green projects
  • Higher transaction costs, long turnaround time due to additional (environmen­tal) assessments, and longer tenor required (hence higher risk) to achieve environmental and financial saving.
  • Although a collateral regime has existed allowing for pledging and mortgaging of immovable assets, facilitating large-scale project finance, obligors must present moveable property to the creditor, thus utilisation of the property impossible. Other property types (raw materials, intellectual property) cannot be securitised at all.
  • Bankers cite that fewer than 5% of SMEs operate in com­pliance with official tax schemes, and frequently do not comply with audit requirements under existing laws.
  • Lack of differentiation for green finance products
  • Loan application process is inconvenient
  • SMEs are not eligible to borrow
  • Poor infrastructure
  • High interest rates and fees
  • Affected by political instability 

Government institutions for cooperation

  • Asian Disaster Preparedness Center (ADPC)
  • Office of Small and Medium Enterprises Promotion (OSMEP)
  • The Department of Disaster Prevention and Mitigation of Thailand (DDPM)

Main institutions providing Green Finance

Main institutions providing Green Finance

Thailand's Board of Investment (BOI)'s investment promotion programmes and fiscal incentives regularly target SMEs and green sectors. The BOI currently offers a 'Productivity Enhancement Program', which encourages companies to use renewable energy, reduce energy con­sumption and replace machinery to improve production efficiency.

Thailand's Energy for Environment Foundation (E for E), which manages the ENCON Fund, comple­ments its funded financing facilities with capacity build­ing and advisory services, through multiple "Service Cells".

Other institutions providing Green Finance in Indonesia are:

CIMB Thai Bank

Bangkok Bank

ESCO Revolving Fund

Thai ESCO

ESCO Revolving Fund

Krung Thai Bank (KTB)

SME Bank

Ministry of Foreign Affairs of Finland

Global Environment Facility (GEF) Trust Fund

 

Krung Thai Bank (KTB) 

KTB - Green Loan:Term Loan (T/L) and Working Capital (W/L)

- This financing scheme provides investment and/or working capital for projects that generate energy savings or enable the consumption and/or sale of clean energy.

- Qualifying projects include: pollution elimination/reduction; environment conservation (including expenses on improvement or renovation of factory/building site); improvements in building construction and related machinery and equipment.

 - For SMEs with planned investments for energy-saving projects or the production of environmentally friendly products

  • Loan amount: Credit limit/line is considered and approved as deemed necessary and appropriate.
  • Interest rate: Minimum Loan Rate-1.0% during the first two years and Minimum Loan Rate from third year onward.
  • Fee: according to Bank procedures
  • Target: All sectors

 KTB- Energy Saving loan:

A Term Loan for SMEs Projects that involve the construction/renovation of a factory or installation/upgrading of machinery and equipment including materials used in energy saving or renewable energy as well as new or alternative energy projects such as power/ electricity generating to be used in business establishments and/or for sale to the Electricity Generating Authority of Thailand (EGAT).

  • Loan amount: Credit limit/line is considered and approved as deemed necessary and appropriate.
  • Interest rate: Minimum Loan Rate
  • Fee: according to Bank procedures
  • Target: All sectors 

KTB Environment Loans for Private Sector:

Promote more environmentally friendly production patterns. Qualifying projects must involve energy savings, the use of renewable energy or the implementation of alternative energy projects.

  • Loan amount: determined on a case-by-case basis
  • Interest rate: 2% with bank guarantee and deposit claim transfer as collateral; 3% with other securities/properties as collateral.
  • Fee: according to Bank procedures
  • Target: All sectors  

KTB SME – Productivity

Term Loan for SME improvement of manufacturing efficiency and technology, development of production/manufacturing process of goods or services, and upgrade of equipment 

  • Loan amount: Term loan (T/L) limit to be considered and approved as deemed appropriate. In case of equipment purchase up to 100% of the purchase price can be borrowed.
  • Interest rate: Minimal Loan Rate-1% per year
  • Fee: according to Bank procedures 
  • Target: Manufacturing   

 

 

New financing for SMEs

Public equity markets offer new vehicles for SME-inves­tor matching with the potential to lower financing costs, providing a source of growth capital for scaling green technology companies as well as a point of exit for in­vestors who have backed earlier stages of a company’s lifecycle.

  • Thailand’s Securities and Exchange Commission (SEC) regularly introduces initiatives to facilitate SME ac­cess to capital markets The SEC launched a trading platform for SMEs in late 2014 (Shino­zaki, 2014).
  • The platform will initially host 10 to 20 SMEs that have at least BHT 10 million (EUR 0.28 million) capi­tal and a two-year operating record. Investors are likely to benefit from the structured framework and high trans­parency that these SMEs convey, while SMEs can access investment fast and at lower-cost (Au, 2014).

Other mechanisms include:

  • The Market for Alternative Invest­ments (MAI) provides a public listing alternative for SMEs with lower costs and less stringent requirements. Es­tablished by the Stock Exchange of Thailand, the plat­form allows SMEs to access long-term capital.
  • ‘SME bond project’ and the ‘Pride of the Prov­ince’ schemes are targeted at educating and incentivising SMEs to issue bonds and launch IPOs respectively. 

Highlights of the ENCON Fund’s child funds:

Since the conclusion of the Energy Efficiency Revolv­ing Fund (EERF) in 2012, the programme was broadly deemed to be highly successful. Several of the fund’s participating commercial banks began investing their own capital in energy efficiency projects. It followed that since the private sector was beginning to take a direct, pro-active role in green lending, the Govern­ment of Thailand decided not to issue a new budget line to the EERF for on-lending, maintaining only tech­nical assistance activities (Sinsukprasert, 2011a).

A key feature of the THB 500 million (EUR 14.15 million) ESCO Fund is the availability of equity finance and lease finance for machinery and equipment, target­ing two critical gaps in realising renewable energy projects. In addition to equity investments and lease financing, funding was also provided for technical assistance and credit guarantee facilities to support SMEs. While the fund has been praised throughout the region, critics argue that many SME energy ef­ficiency investments are too small and therefore not eligible for support (EPPO, 2014). Under ESCO Fund Phase II, Boochareon Green Energy’s 5MW rice husk cogeneration plant was a showcase project. The plant employs gasification technology to produce heat and electricity from rice husk. Heat is used for drying rice, and the elec­tricity is sold to the grid. The project was initiated by the owner of Boonchareon Panich Rice Mill and Panich Ruam Chareon Rice Mill (EforE, 2012).

Asian Superior Foods was funded for a 2.76 MW gas turbine co-generation project. The THB 200 million (EUR 5.68 million) investment, had savings of THB 49 million (EUR 1.4 million) per year and a payback period of 4.08 years (APEC, 2005). 

Status and policies

GHG emissions data

2015 total territorial GHG emissions[1]* (excluding land use change and forestry): 312 MtCO2

2015 territorial GHG emissions per capita: 4.6 tCO2/person 

2014 CO2 consumption emissions:[2] 307 MtCO

*GHG territorial emissions are Carbon dioxide emissions from the use of coal, oil and gas (combustion and industrial processes), the process of gas flaring and the manufacture of cement.


[1] CO2 Emissions | Global Carbon Atlas. (2016). Globalcarbonatlas.org. Retrieved from http://www.globalcarbonatlas.org/en/CO2-emissions 

[2] Carbon dioxide emissions occurring anywhere in the world attributed to the country in which goods and services are consumed. For more information see: Section 2.1.2, The global carbon budget 1959-2015, Le Quéré et al. 2016

GDP

2015 GDP: EUR 373.38 billion

GDP composition by sector (2015):[1] 

Agriculture: 10.4%
Industry: 37.7%
Services: 51.9%

Industry subsectors:[2] tourism, textiles and garments, agricultural processing, beverages, tobacco, cement, light manufacturing such as jewelry and electric appliances, computers and parts, integrated circuits, furniture, plastics, automobiles and automotive parts, agricultural

Agricultural products:[3] rice, cassava (manioc, tapioca), rubber, corn, sugarcane, coconuts, palm oil, pineapple, livestock, fish products


[1] https://www.cia.gov/library/publications/the-world-factbook/geos/th.html
[2] https://www.cia.gov/library/publications/the-world-factbook/fields/2090.html
[3] https://www.cia.gov/library/publications/the-world-factbook/geos/th.html

Industries’ contribution to climate change

Thailand is the world’s largest rice producer and rice production contributes significantly to GHG emissions. The Intergovernmental Panel on Climate Change (IPCC) identified paddy rice cultivation as the second largest agricultural source of methane emissions globally.

Emissions can be lowered through the alternative wetting and drying (AWD) technique, where farmers periodically drain rice paddies, reducing the formation of methane that occurs in standing water, which could reduce methane emissions by 30 – 50%.[1] Water usage is also reduced by up to 30%.


[1] New Climate and Clean Air Coalition agriculture effort tackles climate change, supports rice production. (2014). Ccafs.cgiar.org. Retrieved from https://ccafs.cgiar.org/news/media-centre/press-releases/new-climate-and-clean-air-coalition-agriculture-effort-tackles#.WYrcf9N96-5

Climate change policies

National policies:

  1. The National Climate Change Master Plan (CCMP) 2015 -2050
  2. The Alternative Energy Development plan (AEDP) 2015-2036
  3. Green Growth Strategic Plan 2013 - 2018
  4. Energy Efficiency Plan (EEP) 2015- 2036 
  5. The 12th National Economic and Social Development Plans (NESDP) 2017-2021[1]
  6. National Strategy on Climate Change 2008-2012

 

International mitigation targets:

Ratified UNFCCC in 1994
Ratified Kyoto Protocol in 2002
Ratified Paris Agreement in 2016

Thailand’s Intended Nationally Determined Contribution (INDC) to the United Nations Framework Convention of Climate Change (UNFCCC):[2]

Thailand intends to reduce its greenhouse gas emissions by 20% from the projected business-as-usual (BAU) level by 2030.

The level of contribution could increase up to 25%, subject to adequate and enhanced access to technology development and transfer, financial resources and capacity building support through a balanced and ambitious global agreement under the United Nations Framework Convention on Climate Change (UNFCCC).

Government financing for climate change related initiatives:

During 2009-2011, budget for adaptation actions in Thailand accounted for 68% of the total budget allocated to climate change.

The National Committee on Climate Change (NCCC) was established in 2007 to help develop climate change policy.


[1] Office of the National Economic and Social Development Board. (2017). Nesdb.go.th. http://www.nesdb.go.th/nesdb_en/main.php?filename=index

[2] INDCs - Intended Nationally Determined ContributionsUnfccc.int. 2017. Retrieved from http://unfccc.int/focus/indc_portal/items/8766.php

Office of Natural Resources and Environmental Policy and Planning (ONEP). (2015). Intended Nationally Determined Contribution and Relevant Information.Retrieved from http://www4.unfccc.int/ndcregistry/PublishedDocuments/Thailand%20First/Thailand_INDC.pdf

Climate change adaptation efforts

Thailand’s INDC incorporates an adaptation component. Thailand’s adaptation priority areas are:

  • Integrated Water Resources Management (IWRM)
  • Improved agriculture and land management to safeguard food security
  • Promote sustainable agriculture
  • Increase capacity to manage climate-related health impacts
  • Increase national forest cover to 40%, including mangrove forests
  • Safeguard biodiversity and restore ecological integrity in protected areas
  • Develop a marine conservation and coastal rehabilitation plan and strengthen against coastal erosion
  • Strengthen disaster risk reduction and establish early warning systems
  • Build regional climate resilience 

Climate change impacts

Thailand is located in the South East Asian peninsula and has a population of 68 million.[1] The country has 2,420 kilometers of coastline, which leaves the country very vulnerable to climate change impacts. In the past 30 years there has been an increase in frequency and severity of floods, droughts, extreme weather events, sea level rise and increased temperatures. These events have negatively impacts on the economy and the fragile agriculture sector, on which 32% of the population (21 million people) rely for their livelihoods. Thailand has a rapidly growing economy that needs to balance energy needs with environmental conservation.

Main climate change impacts include: 

  • Increases and changes in precipitation
  •  Rising temperature
  •  Drought
  • Floods
  • Sea level rise
  • Tropical storms and cyclones
  • Coastal erosion
  • Water scarcity
  • Loss of coastal and marine ecosystems
  • Health issues
  • Loss of biodiversity

[1] The World Factbook — Central Intelligence Agency. (2017). Cia.gov. Retrieved 8 August 2017, from https://www.cia.gov/library/publications/the-world-factbook/geos/th.html

Economic, social, and environmental impacts of climate change

Small and Medium-sized Enterprises (SMEs):

  • Thailand is a manufacturing hub and important in the global manufacturing supply chain.
  • After the severe floods in 2011 the production of information and communications equipment declined 73% in the wake of the flooding.[1]
  • 2011 floods caused industry losses of around EUR 3.75 billion or 71% of the total loss of real GDP.
  • Disrupted supply chains
  • Damage to infrastructure and facilities.
  • Disrupted transport and logistics routes.
  • Heightened price and market volatility.
  • Impacts on employees and consumers – lack of access to basic goods and services
  •  Health issues from heat waves and increase of disease will cause decreases in labor and work production.

Extreme weather events:

  • In Thailand, daily maximum temperatures are projected to increase generally by 2°C throughout the year and up to 3°C during the wet season, with the number of warm days (> 35 degrees C) expected to increase.
  • Heavy rains led to floods in December 2016. 1.8 million people and 590,000 families were adversely impacted. The floods have also damaged 4,314 roads, 348 bridges, 270 drains, 126 weirs, two reservoirs, 70 government offices and 2,336 schools according to the Department of Disaster Prevention and Mitigation (DDPM).
  • The floods in 2011 impacted 77 out of Thailand’s 84 provinces, affecting 1.69 million hectares of land. The losses in agriculture, livestock and fishery amounted to THB 75,725 million (EUR 1.89 billion). Total economic losses were over EUR 43.16 billion or 13% of that year’s GDP.
  • Droughts in 2010, 2014, and 2015 have severely impacted water supply.

 

Agriculture:

  • Farming systems will be affected by changes in climate; smallholder farmers will suffer the most.
  • Rice is Thailand’s main export product – Thailand is the world’s largest rice exporter. In northern and NE Thailand Lowland rice, lychee, rubber and cassava will suffer production losses due to higher temperatures.
  • The severe drought in 2015-2016 caused by climate change impacts and an El Nino event. The drought affected 30 out of 77 provinces, with a 16% decrease in rice production from 19.8 million tonnes to 16.5 million, with 9 million set aside for export.[2]
  • Around 32% of Thailand’s population relies on agriculture for their livelihood, with 12.27 million people in 2015 working in the agricultural sector (Bank of Thailand, 2016).
  • In northern Thailand flash floods will cause losses in maize, rice and soybean production.
  • Excessive rainfall at harvest times could affect yields and increase pests.
  • Livestock will be affected by heat stress and will be more prone to disease.

 

Water resources:

  • Water scarcity means water shortages and restrictions for household use, energy, and irrigation. 
  • Low water supplies in Thai damns have caused conflicts with Chinese dam operators.

 

Fisheries:

  • Adversely impacted by temperature rise and changes in rainfall patterns.
  • Higher temperatures in the spawning season will reduce reproduction and adversely impact the habitat, affecting the water quality of aquaculture ponds.

 

Coastal areas:

  • 23 out of 73 provinces cover a total of 3,148 km of coastline.
  • A sea level rise of 1 meter would affect 1.4 million people in low-laying coastal areas.[3]
  • Increases the chance of cyclone and storm surges.
  • Damage to marine ecosystems.
  • Will damage tourist destinations that are in low-lying coastal areas.

 

Health:

  • Rise of water and vector-borne illnesses such as malaria and dengue: in September 2008, over 200,000 people in northern Thailand were diagnosed with waterborne diseases after 19 days of heavy flooding.[4]
  • Rising temperatures and heat waves will cause heat-related illness or death; especially for children, elderly and the chronically ill.
  •  Decreases in food production and more food insecurity, leading to malnutrition in vulnerable groups.
  • Air pollution: “In Thailand, by 2030, an estimated 2,600 annual premature deaths due to outdoor air pollution.” [5]

[1] Avory, B., Cameron, E., Erickson, C., & Fresia, P. (2015). Climate Resilience and the Role of the Private Sector in Thailand: Case Studies on Building Resilience and Adaptive Capacity. BSR Report, BSR. Hong Kong. Retrieved from https://assets.rockefellerfoundation.org/app/uploads/20151009123211/Climate-Resilience-Role-Private-Sector-Thailand.pdf

[2] Luedi, J. (2016). Extreme drought threatens Thailand's political stability | GRI. Global Risk Insights. Retrieved from http://globalriskinsights.com/2016/01/extreme-drought-threatens-thailands-political-stability/ 

[3] Naruchaikusol, S. (2016). Climate Change and its impact in Thailand A short overview on actual and potential impacts of the changing climate in Southeast Asia. Transre Fact Sheet, Issue No. 2. Retrieved from http://www.transre.org/files/3114/6522/5151/Climate_Change_in_Thailand_TransRe_Fact_Sheet_No.2.pdf

[4] Avory, B., Cameron, E., Erickson, C., & Fresia, P. (2015). Climate Resilience and the Role of the Private Sector in Thailand: Case Studies on Building Resilience and Adaptive Capacity. BSR Report, BSR. Hong Kong. Retrieved from https://assets.rockefellerfoundation.org/app/uploads/20151009123211/Climate-Resilience-Role-Private-Sector-Thailand.pdf

[5] World Health Organization. (2015). Climate and Health Country Profile Thailand. Retrieved from http://www.searo.who.int/thailand/areas/phe-country-profile-thailand.pdf?ua=1

International cooperation on climate change

 

Status: 2017. Inclusive of grants and loans; not an exhaustible list.

     

Partner

 

No. of Projects

Program/ Areas of focus

Funding Amount

Duration

Funding Sources

Global Environment Facility (GEF)

70

Biodiversity, climate change, chemicals and waste, Persistent Organic Pollutants

€438.13 Million

Ongoing

GEF Trust Fund, Special Climate Change Fund

The Global Environment Facility Small Grants Program (GEF SGP)

 

384

Climate change, biodiversity, adaptation, water resources management

€5.93 Million

1993 – Ongoing

 

GEF SGP

World Bank

2

Partnership for Market Readiness (PMR)

€5.46 Million

2015-2019

World Bank

Thailand HCFC Phaseout Project (Phase I

€22.47 Million

2014- 2018

UN REDD

1

Reducing emissions from deforestation and forest degradation readiness preparation

€3.40 Million

Ongoing

Forest Carbon Partnership Facility/World Bank

Clean Air Coalition to Reduce Short-Lived Climate Pollutants (CCAC) & International Rice Research Institute (IRRI)

 

Mitigation strategies in rice production, in collaboration with the Climate and Clean Air Coalition (Phase II)

 

n/a

2016 - 2018

CCAC, IRRI, and CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS)

 

 

UNDP

 

2

The Biodiversity Finance Initiative

€500,613

2014-2017

EU, Governments of Germany, Norway, Switzerland, Flanders

Low Emission Capacity Building (LECB)

€878,435

2013-2015

Government of Germany, Government of Australia, EU

International Climate Initiative (IKI)

30

SCP, low carbon development, green banking, biodiversity, agriculture, adaptation plans

Millions

Ongoing

 Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) 

Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH. (GIZ)

 

4

 

Climate change policy support

€3.26 Million

2013-2017

 

Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB)

Risk Based National Adaptation Plan

€3.75 Million

2015-2019

Extreme event management (water disasters)

€3.28 Million

2013-2017

Advancing and Measuring SCP for a low Carbon Economy in Middle Income and Newly Industrialized Countries

€ 2 Million

2015- 2018

NAMA Facility

2

Thailand Refrigeration and Air Conditioning NAMA (RAC NAMA)

€ 14.7 Million

 

 

2016-2020

 

GreenRAC Innovation Fund (GRIF), Government of the Federal Republic of Germany, UK Department of Energy & Climate Change (DECC)

Thai Rice NAMA - Detailed project preparation - DPP

€ 0.25 Million

2017

 

Royal Thai Government, private sector