Crisis Management for a Conflict with North Korea
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How Thailand Turns Climate Risks into Growth Opportunities
VN Express | Local Language | News | Dec. 5, 2025 | Climate Change
Thailand is leveraging climate risks as opportunities for sustainable growth through initiatives like i2P (Ideas to Products), which promotes the use of PCR recycled plastics in product development. Established in 2019 and operated by SCGC under SCG, i2P collaborates with over 200 organizations yearly, launching more than 20 products annually, many incorporating recycled materials. This effort aligns with the country’s broader push towards green products and a sustainable economy, especially in response to climate threats highlighted by the World Bank’s Climate and Development Report. Key risks include flooding in the Chao Phraya river basin, severe droughts in agricultural regions, and coastal erosion impacting tourism.
In response to these challenges, Thailand adopted the Bio-Circular-Green Economy (BCG) model as part of its 2021 national agenda, alongside a commitment to carbon neutrality by 2050. The Saraburi Sandbox, a public-private partnership launched in 2023 in the country’s leading cement-producing province, has successfully reduced over 1 million tons of CO2 by integrating clinker-replacing materials, nanotechnology, and renewable energy sources such as solar power and biofuels. Efforts to incorporate waste heat recovery and refuse-derived fuel have further cut emissions and pollution, contributing to environmental and economic resilience.
Thailand has significant potential to meet rising global demand for green technologies, being a major exporter of energy-efficient air conditioners, solar panels, and electric vehicle components. However, green products currently represent less than 10% of its export value. Challenges to green economy growth include consumer hesitancy driven by price and quality considerations, limited renewable energy supply making electricity costly, and slow energy transition compared to neighboring countries. The government is urged to incentivize private sector investment in clean energy and liberalize the electricity market to reduce production costs and boost export competitiveness.
Micro, small, and medium enterprises (MSMEs), which constitute 99.5% of Thailand’s businesses, face barriers including capital access, market connectivity, regulatory complexity, and skill shortages. The Federation of Thai SMEs plans to address these by providing emergency working capital, flexible financing options, and skills development in digital, AI, and green transitions. SCG emphasizes the need for a competitive and feasible strategy combining market liberalization, centralized business support, workforce training, and alignment of national development with greenhouse gas reduction targets to empower SMEs as key drivers of sustainable economic growth.
Furthermore, Thailand is advancing regulatory frameworks with the drafting of a Climate Change Act and a Clean Air Act. The Ministry of Natural Resources and Environment is partnering with the private sector to expand recycled plastics production, targeting the phase-out of single-use plastic bags to support environmental sustainability.