Thailand's future: BCG model fights climate challenges!

Thailand's future: BCG model fights climate challenges!

The climate and sustainability agenda is very popular in Thailand. Recognizing the challenges posed by climate change, the Thai government introduced the Bio-Circular-Green (BCG) model in 2021 to drive a sustainable, low-carbon economy. The implementation is intended not only to support the economy, but also to strengthen resilience to climate risks such as sea level rise and extreme weather events. According to thaipr.net, the agricultural and fishing sectors are particularly affected by rising climate risks, compounded by their significant contributions to local economies and food security.

However, the World Bank warns of enormous economic losses. Agricultural production losses could be between $2.9 billion and $5.4 billion, while up to $26.2 billion of fishery value is at risk. The risks are increasing: heat stress will severely impact ocean ecosystems and have serious impacts on fisheries. Given these challenges, it is essential to develop comprehensive climate change adaptation and mitigation strategies and establish progressive public-private partnerships.

Green economy as a future strategy

The BCG model is not only a response to climate change, but also part of a broader development strategy that promotes innovation and technology. Thailand committed to the 2030 Agenda for Sustainable Development in 2015 and is now making progress on the UN Sustainable Development Goals (SDGs). In 2020, the country ranked 43rd among 165 nations in the SDG index - a notable increase from 55th in 2017, according to bcg.in.th.

Now crucial sectors such as agriculture, wellness, energy and tourism are called upon to make their contribution to the circular economy. The BCG model aims to increase the competitiveness of sustainable industries while empowering communities. Successful implementation of these concepts could increase GDP by 1.0% while creating 160,000 new jobs.

Challenges and opportunities

Farms in Thailand are facing the challenge of meeting increasing demand for food—the global population is estimated to grow to 9.8 billion by 2050, requiring a 70 percent increase in food production. To overcome this challenge, strengthening food quality and safety standards is essential. Demand for bio-based products is estimated to be approximately $350 billion by 2027, while market share for biochemicals is expected to grow from $6.5 billion in 2016 to $24 billion in 2025.

However, Thailand must also address the challenges of climate change such as the rising cost of air conditioning and the loss of natural resources. By 2050, adjustment costs could be at least 1.6% of GDP. Despite these challenges, sustainable land use and green infrastructure offer opportunities to minimize flood damage and other climate risks.

With a clear plan and a determined focus on a green future, Thailand could not only protect its environment, but also strengthen the economic base and benefit communities. It will be exciting to see how these initiatives bear fruit in the coming years.