Keeping up with the United Nations – Manop Udomkerdmongkol

As an UNRCO economist in Thailand, I am responsible for advising the Resident Coordinator and the UN Country Team on emerging and long-term economic trends and their policy implications, leading high-quality and relevant development economics research, and engaging with IFIs, academia, and private sector.

In Thailand, the Government is committed to the transformation towards an inclusive and sustainable economy, premised on the Bio-Circular-Green (BCG) Economy Model. The Prime Minister set out an ambitious pathway for lowering emissions, which includes transforming agriculture into a low-carbon, climate-resilient and resource-efficient ecosystem, phasing out the use of coal by 2040, increasing forest cover to 55 per cent of the total land area by 2037, and committing an investment of US$2 billion through sustainability-linked bonds to unlock additional green financing from domestic markets.

The private sector is also facilitating the green transition by making their own commitments. This includes the Global Compact Network Thailand, a partnership of 100 private sector players, most of whom have set 2050 as their target for carbon neutrality starting in 2021. They have already contributed to reductions in emissions by 8 million tons, which is equivalent to 1.6 million cars being taken off the roads. However, this sense of purpose to transform business operations premised on ESG also needs to become the norm for SMEs. They will need technical and financial support to develop their capacity and higher-order skills in the service of the BCG.

PAGE was launched in Thailand in 2022 to bring together the world-class technical expertise of five UN agencies to accelerate the country’s green transformation and contribute to advancing the SDGs nationwide. These agencies, in partnership with the government and private sector, are building capacity for green methods and technologies; integrating green economy targets into nationwide development plans; and piloting BCG projects in sustainable agriculture, ecotourism, biodiversity restoration, to name a few.

Vast quantities of household and industrial waste, including plastics, remain unrecycled in Thailand. At present, around 87 per cent of recyclable materials is left unrecovered, equaling US$4 billion of economic value annually. The PAGE initiative is working to incentivize recycling and improve waste management capacity in pilot locations. In a collaboration with the municipality in Rayong and the private sector, PAGE is developing mobile applications for education on waste, fee collection, and rewards for separation and recycling.

Simultaneously, PAGE is working with the Ministry of Agriculture and Cooperatives to cut agricultural waste in half from fruit and industrial crops such as durian, mango, palm oil and coffee by upcycling waste into new products. The project already involves 50,000 farmers across 14 provinces and will secure livelihoods.

Let me outline two key areas that require acceleration.

First, policy advice to formalize the carbon market. The carbon market remains voluntary in Thailand with private sector informally trading carbon credits. In a post COP28 world, PAGE can support the Government to examine carbon pricing, mechanisms for reporting carbon credits, and the knock-on effects for the economy, and specifically SMEs. In coordination with government regulators, we can leverage UN’s convening role to connect the businesses, investors, and bankers to prepare for a formal domestic market and potentially regional trading.

Second, longer term policy advice and programme support for green jobs and upskilling. Green job creation will also safeguard human health and wellbeing as well as long-term sustainable development and biodiversity protection. The green economy is still an emerging field, but responsible investments by the capital markets can translate into new green jobs and move the needle on circularity. Under the leadership of ILO, PAGE will be a critical platform to take this agenda forward.