The OPEC Fund for International Development (OFID) and the Asian Development Bank (ADB) have entered into a co-financing agreement to bolster Thailand’s new economic model for sustainable development. This partnership aims to promote the country’s transition towards a bio-circular green (BCG) economy, as part of its ambitious vision known as “Thailand 4.0.”
OFID has committed a technical assistance grant of US$500,000 to support a project aimed at strengthening Thailand’s BCG economy. The grant will enhance the capacity of the Thai government to integrate the BCG model into national development strategies, fostering sustainable growth and inclusiveness. This collaboration aligns with OFID’s mission of promoting sustainable development, in conjunction with the Asian Development Bank.
Abdulhamid Alkhalifa, Director-General of the OPEC Fund, expressed the organization’s commitment to supporting Thailand’s efforts in adopting the BCG model. He stated, “The technical assistance provided by the OPEC Fund will strengthen the capacity of the Government of Thailand to integrate its new bio-circular green economy model into national development strategies. With our support, we aim to foster sustainable growth and inclusiveness. The approach reflects our commitment to promoting sustainable development with the Asian Development Bank.”
Warren Evans, ADB Climate Envoy, emphasized the significance of the financing partnership between ADB and OFID in advancing Thailand’s BCG model. He highlighted the project’s aim to incorporate global best practices into locally relevant approaches and pilot projects, thereby accelerating green development. Evans expressed support for Thailand’s ambitious economic model and its focus on the BCG framework.
The project will be administered by the ADB in close collaboration with the National Science Technology and Development Agency of Thailand. It has garnered additional support from the “Republic of Korea e-Asia Knowledge Partnership Fund” and the government of Australia.
Thailand’s BCG model aims to promote sustainable agriculture, clean energy, responsible consumption and production, as well as the conservation and responsible utilization of biodiversity. It is anticipated to attract nearly US$23 billion in new investments by 2030, with the private sector projected to contribute approximately 85% of the total.
OFID’s grant will play a crucial role in identifying investment opportunities and supporting growth in key sectors within the BCG model. These sectors include agriculture and food, energy, materials and biochemicals, wellness and medicine, tourism, and more. By leveraging the grant, Thailand can attract private sector investments and drive sustainable development in these vital areas.
The collaboration between OFID and ADB demonstrates their shared commitment to advancing sustainable development goals and supporting countries in their transition towards greener economies. The partnership will provide Thailand with valuable expertise, financial resources, and innovative approaches to realize its vision of a robust and environmentally conscious economy.
As the project progresses, it is expected to lay the foundation for a more resilient and sustainable future for Thailand, while serving as a model for other countries embarking on similar transformational journeys. The combined efforts of OFID, ADB, and their partners will contribute to the realization of Thailand’s BCG model and promote a greener, more inclusive economy in the region.
The collaboration between OFID and ADB in supporting Thailand’s BCG model signifies a significant step towards achieving the country’s sustainable development goals. The integration of global best practices and the expertise of both organizations will help accelerate the adoption of innovative approaches and pilot projects tailored to Thailand’s unique context.
Thailand’s BCG model emphasizes the importance of sustainable agriculture, clean energy, responsible consumption and production, as well as the preservation and responsible use of biodiversity. By focusing on these sectors, Thailand aims to attract substantial investments, with the private sector playing a pivotal role in driving economic growth and sustainable development.
OFID’s technical assistance grant will be instrumental in identifying investment opportunities and promoting growth within key sectors of the BCG model. This financial support will enable the Thai government to leverage private sector investments and create a conducive environment for businesses to thrive in sustainable industries such as agriculture, energy, materials, healthcare, and tourism.
The project’s administration by the ADB in close collaboration with the National Science Technology and Development Agency of Thailand ensures effective coordination and implementation. This multi-stakeholder approach brings together expertise from various fields and maximizes the project’s potential impact.
