Resident Coordinator's Message to the Exponential Path to Net Zero: 100 Ideas for a Sustainable World Seminar

Khun Chaiwat, Khun Lavaron, colleagues and friends,

Thank you for the opportunity join you today. The UN Secretary-General has called COP26 a compromise, in his words reflecting the interests, the conditions, the contradictions and the state of political will in the world today.   

Ahead of COP27 next year, we need much more ambitious commitments, including here in Thailand.

In particular, I want to thank Bangchak as a leader in the energy sector that has already set the net-zero target for 2050. More private sector players worldwide need to show this level of ambition and confront the climate challenge head on, addressing what must be done and where we are falling short.

In the spirit of today’s discussions, my job is to relate 10 things about climate change that you might not know. Let me frame these points as signposts, signaling how coalitions we build here in Thailand, can reinforce climate action efforts and maximize our progress.

First, COP26 and the Paris Agreement.

Let’s be clear. Without the Paris Agreement, we would be on a catastrophic trajectory with average warming as much as 4 degrees.

The Agreement has become a foundational document on par with the Universal Declaration of Human Rights and the Sustainable Development Goals.

Still, on our current path, we are on course for 2.4-degrees average warming, which is still far too much.

Point 2, to “keep alive 1.5 degree” goal.

The most recent Global Carbon Budget report concludes that the output of greenhouse gases has risen faster than expected, with half of the global carbon budget spent in just the past six years.

We know the consequences – and what can be achieved if we act now. The IPCC has made clear that even half a degree of difference can have massive consequences. For example, rice yields in Thailand could possibly be influenced, with Bangkok at risk due to rise in sea levels and sinking land.

Point number 3, Nationally Determined Contributions.

The NDCs, are the starting points, not the end destination, that we need.

The nearly 200 countries that attended COP26 have agreed to revisit and strengthen their 2030 emissions reduction plans next year.

Thailand joined those commitments, with the Prime Minister telling COP26 that carbon neutrality is set for 2050, and net-zero greenhouse gas emissions by 2065.

As of 2021, all 10 ASEAN Member States have also declared their NDCs.

For point 4, let’s look at what Thailand can do now to keep pace and position itself as a leader.

We did see international agreement on ending deforestation, phasing down coal power and limiting methane emissions, as well as the first mention to address “inefficient” fossil fuel subsidies.

These are important steps forward that Thailand still has the opportunity to join.

Climate action will increasingly be felt as a domestic priority, as a global poll by UNDP suggests 60% of people in Thailand already consider it a global emergency, with the first four priorities to conserve forests and land, invest in the green economy and jobs, climate-friendly farming, and solar and other renewables.

Point 5, green spending.

The IMF concludes that green multipliers can actually be as much as 7 times more than conventional multipliers.

In Thailand, we see momentum following the Sustainable Financing Roundtable in September, where 43 banks and investors with a total asset base of US$1.3 trillion jointly committed to climate financing.

In our recent discussions, banks report that lending based on ESG factors reduces risk and increases benefits for portfolios with higher rates of returns, improved productivity and efficiency, and reduced waste.

Point 6, relates to the private sector with a focus on SMEs, where we stand and what needs to be done.

The Global Compact Network Thailand representing more than 85 members has already pledged to reach net-zero by 2050, but we need to do more to support businesses of all sizes to set and achieve climate-related goals.

SMEs need to be part of the solution but are not always equipped to do so. We need to start with an analysis of the SME landscape, sectors that are winners and losers, and those that will be hardest hit by emissions limits.

We also understand that each business needs to move at its own pace to deliver on sustainability principles as they learn and unlearn.

This leads to point 7, innovation, which needs to come from you, the people in attendance today, who see the opportunity as well as challenges before us.

Keeping pace with climate ambitions depend on further breakthroughs, especially in areas such as renewables, energy storage and batteries which need to be premised on international standards.

We recognize Thailand as a wellspring of innovation and research, currently on display in the production of domestically produced vaccines and alcohol-free disinfectants.

The economy also needs to keep current with emerging technologies, seen in the push towards electric vehicles.

My 8th point focuses on carbon markets and incentive-based structures.

COP26 saw progress on the Paris Agreement Rulebook, setting rules for a new global carbon market to replace the Clean Development Mechanism.

Setting a price on carbon is an important regulatory instrument to incentivize the transition to net-zero, innovation, and investments in sustainable technologies.

The Bank of Thailand is working closely with other institutions to develop definitions on green financing and sustainability aligned with international standards.

Linked with market-based agreements across ASEAN, this could enable Thailand to be a leader in the future low-carbon economy.

Point 9, biodiversity.

There are almost 470 threatened species in Thailand that could go extinct in our lifetimes.

This ecological crisis is intrinsic to the climate crisis. Last month, the IUCN issued a landmark statement connecting climate change, land degradation and pollution as drivers of biodiversity loss. Conversely, loss of biodiversity and habitat amplify climate change.

The UN is currently building coalitions to identify champions for threatened species and their habitats, and we’ll be reaching out to you, the participants here today, as partners to take a central role as protectors of Thailand’s ecosystems and biodiversity.

To conclude, point 10 is about these essential partnerships.

We need to build on the cooperation represented here today, for coalitions that are as inclusive as possible, from policymakers and the private sector to civil society and the most vulnerable. Just as each of us will be impacted by climate change, everyone’s voice and contribution must be valued for long-term and durable solutions.

The UN is a steadfast partner in this effort, bringing unparalleled international expertise and global networks to support Thailand’s path forward.

These 10 points outline the agenda in Thailand, in terms of what we can achieve, rather than something that we need to fear. The future is ours to shape, but the time for action is now.

I look forward to learning from the other speakers here today, hearing your ideas for a sustainable world, and strengthening our continued collaboration.

Thank you.