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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 steady and sustainable growth.
Context
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 infrastructure, 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. Our action is focused on two areas: combating climate change and protecting the environment.
AFD's Thailand office is directly attached to the Southeast Asia regional office.
Our approach
AFD and Thailand: tackling climate disruption and protecting the environment
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.
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.
Our agency, located in the Thai capital, also plays a regional role for AFD in Southeast Asia:
- It implements regional projects in Thailand and the rest of Southeast Asia, for example with a project to support the emergence of geographical indications in the region
- It houses the activities of Proparco, its private sector subsidiary, in charge of representation and project identification in the following countries: Myanmar, Cambodia, China, Indonesia, Laos, Malaysia, Mongolia, Philippines, Thailand and Vietnam
- It has a team of technical experts in the following sectors: energy, rural and agricultural development and preservation of biodiversity, water and sanitation, urban development, banking intermediation and financing of public enterprises
- It organizes vocational training courses and different workshops for the whole of Asia (disaster risk management, urban planning, water management, etc.)
- It is developing third-country cooperation with its Thai counterpart, the Thailand International Cooperation Agency (TICA).
- As part of its mandate to fight against climate change, AFD is also exploring projects supporting urban development and environmental management of municipalities, in the areas of waste treatment, water management, wastewater treatment and environmental risk management, for example.
