In a recent seminar titled “Road to Net Zero 2024: The Extraordinary Green,” Anuch Metha, Director of the Asian Development Bank (ADB) Thailand Office, called for urgent economic restructuring in Thailand to address climate change effectively. The seminar, organized by Thansettakij, highlighted the pressing need for a financial system that supports the green economy amidst growing climate challenges in Thailand and the broader Asia-Pacific region.
Metha underscored the necessity for Thailand to realign its economy with climate realities to ensure long-term survival. He pointed to the critical role of green finance in facilitating this transition, given the increasing frequency of extreme weather events such as floods and other natural disasters.
“To navigate the realities of climate change, Thailand must expedite its economic transformation,” Metha stated. He emphasized that the region needs approximately USD 1.7 trillion annually (about 59.5 trillion baht) by 2030 to develop climate-friendly infrastructure. The ADB has been active in this area, partnering with various Thai agencies to issue sustainability and blue bonds. These efforts have raised nearly one billion dollars in bond issuance, which subsequently attracted an additional ten billion dollars from the market.
Metha called for innovative financial solutions to mitigate investment risks associated with green projects. He urged for increased government policy support and stronger collaboration with the private sector to channel capital into green initiatives effectively. Among his recommendations was the implementation of a carbon tax, which could provide businesses with tax incentives for reducing emissions.
Metha also highlighted regional successes, such as Cambodia’s 100-megawatt solar park project and Thailand’s investments in green infrastructure, including electric tuk-tuks and e-buses, as examples of progress towards a green economy.
A significant concern raised by Metha was the issue of “greenwashing,” where organizations make misleading claims about their environmental benefits. He stressed the importance of funding projects with transparent frameworks for measuring environmental impact to prevent greenwashing.
The ADB’s establishment of the Nature Solutions Finance Centre in Bangkok is part of its commitment to enhancing biodiversity and environmental conservation in Thailand. Metha concluded by affirming the immense demand for green finance and the necessity of leveraging resources from all sectors to achieve sustainable outcomes.
“The need for green finance is substantial. We must mobilize resources across all sectors to support Thailand and the region in reaching their green finance targets,” Metha asserted.
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