Thailand’s green economy boosted by OFID-ADB collaboration

The OPEC Fund for International Development (OFID) and the Asian Development Bank (ADB) have pledged to jointly bolster Thailand’s pursuit of sustainable growth. The collaborative effort hinges on a co-financing agreement aimed at underpinning the country’s evolving economic model designed for enduring development.

Thailand's green economy boosted by OFID-ADB collaboration

The OPEC Fund is earmarking a $500,000 technical assistance grant for a project aimed at consolidating Thailand’s bio-circular green (BCG) economy. This project aligns with the country’s robust vision for a paradigm shift into an innovation-driven, value-based economy, a transformation encapsulated in the “Thailand 4.0” initiative.

Abdulhamid Alkhalifa, Director-General of the OPEC Fund, articulated that the technical aid from the fund would empower the Thai government to integrate its BCG model seamlessly into the national development blueprints. He stressed their dedication to bolstering sustainable growth and inclusivity, a commitment echoed in their partnership with the Asian Development Bank.

ADB’s Climate Envoy, Warren Evans, confirmed the significance of their financial collaboration with the OPEC Fund. He emphasized that the project would leverage global best practices, adapt them to local context, and implement them in pilot projects to expedite Thailand’s green development. Evans expressed support for Thailand’s focus on the BCG as an ambitious economic blueprint.

The ADB will oversee the project in tandem with Thailand’s National Science Technology and Development Agency. Backing the project are the Republic of Korea e-Asia Knowledge Partnership Fund and the Australian government.

The BCG model propounds sustainable agriculture, clean energy, responsible consumption and production, and the prudent utilization and conservation of biodiversity. Forecasts suggest the model could attract nearly $23 billion in fresh investments by 2030, with an estimated 85% stemming from the private sector.

With the OPEC Fund’s grant, key sectors within the BCG model, including agriculture, food, energy, materials, biochemicals, wellness, medicine, and tourism, among others, will identify investment opportunities and witness supported growth.