Thailand

Thailand is an emerging country, with the second-largest economy of Southeast Asia. But it faces a triple challenge: an aging population, maintaining competitiveness and preserving the environment. AFD is supporting the country's transition to sustainable and constant growth
Boat, Thaïlande
AFD AND THAILAND: FIGHTING AGAINST CLIMATE CHANGE AND PROTECTING THE ENVIRONMENT
Boat, Thaïlande

Encouraging the energy transition

Solar panels in Thailand electricity

Encouraging the energy transition

Like many emerging countries undergoing rapid economic development, Thailand has a very high rate of energy use. It is currently almost twice the amount of the majority of European countries and up to three times higher than the average of Latin American countries. Production of electricity, which is still largely of fossil origin (64% from gas and 20% from coal) leads to considerable greenhouse gas emissions.

As part of the Paris climate Agreement, Thailand has undertaken to diversify its sources of energy and to develop solar and wind power, as well as power from biomass and waste processing. It is aiming for a 30% reduction in energy intensity by 2036.

AFD is supporting this ecological transition through a credit line granted to Kasikorn Bank to finance energy efficiency projects. The objective is to reduce the quantity of energy consumed in private and commercial buildings. AFD is also providing guidance to the bank in identifying projects and improving its practices in green finance.

Guidance for urban development

An intersection in Thailand

Guidance for urban development

The dramatic growth of cities has generated an increasing need for urban transportation. An ambitious plan calls for the renovation, modernization and extension of public transportation networks in the capital as well as in and between other cities and regions of the country.

Along with the various private and public operators of the sector, AFD is organizing discussion workshops on the technical and financial aspects related to transportation. The first was held in Bangkok, on improving urban integration through transportation. The second was held in Phuket, where a tramway project is under review.
 

Looking beyond Bangkok

Boat, Thaïlande

Looking beyond Bangkok

Our agency in the Thai capital also plays a regional role for AFD in Asia:

  • In Burma and Laos, it supervises the AFD offices there.
  • It houses the activities of Proparco, the AFD subsidiary for the private sector, which covers several Southeast Asian countries.
  • It hosts a team of technical experts on finance and energy.
  • It organizes professional training sessions for the entire Southeast Asia region.
  • It develops development cooperation activities in third countries with its Thai counterpart, the Thailand International Cooperation Agency.
2004
AFD opens an office in Bangkok.

Thailand is one of the world's emerging countries. It enjoys constant growth despite an unstable political situation and is the second-largest economy of Southeast Asia (the fourth-largest economy in terms of per-capita GNP).

To maintain growth while reducing social inequalities, the country has chosen to invest in infastructure, innovation, health, education and the preservation of the environment. And the government is implementing significant regulatory reforms.

AFD has been present in the country since 2004. It is focusing its action on two fields: management of global public goods (climate and biodiversity) and responsible governance.

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