Resident Coordinator's remarks at the Climate Action Leaders Forum

Your Excellency Khun Varawut, Khun Kiatchai, Dr. Sumet, experts and colleagues,

Thank you for the opportunity to address you on climate leadership, joining an impressive roster from across society, just the kind of cross-cutting collaboration we need to address such a complex and multifaceted issue.

In particular, let me express my appreciation to Khun Kiatchai and TGO for hosting this meeting, which has been delayed because of the pandemic but could not be more timely today.

At the policy level, it is vital that Thailand keep pace and anticipate global trends in climate action, for meaningful progress to reduce emissions at home, as a leader on the international stage and to remain competitive in a global economic environment that is being reshaped as we speak.

This is of course a wide-ranging discussion, and I want to take a macro view of the policy implications for Thailand, specifically covering the takeaways from COP26, the role the UN can play supporting Thailand, and the public-private partnerships that are essential moving forward.

Following COP26 last month, we need to collectively assess the implications for Thailand, specifically regarding carbon markets carbon pricing and NDCs, and the policies that we need to consider now to take advantage of this changing environment.

I strongly urge all of us to view this changing landscape in terms both of the urgent necessity to curb emissions, but also opportunities for innovation and growth, in line with the structural transformation spelled out in the 13th NESDP and bio-circular green economy.

COP26 made headlines early on for international agreements on ending deforestation, phasing out coal power and limiting methane emissions, as well as the first mention to address “inefficient” fossil fuel subsidies.

These are admittedly incremental steps in our shared goal of “keep 1.5 alive”, to limit average global warming and avert the consequences of higher temperatures.

As of this year, all 10 ASEAN Member States have tabled their NDCs, including Thailand with the Prime Minister telling COP26 that carbon neutrality is set for 2050, and net-zero greenhouse gas emissions by 2065.

At present, the sum of NDCs is projected to result in average warming of 2.4 degrees, well off the ambitions set by the Paris Agreement, and each half-degree of difference has major ramifications.

We also need to look closely at some of the more technical agreements of the conference regarding the Paris Agreement Rulebook, and specifically Article 6 relating to a new global carbon market for consistent and transparent emissions trading, as well as addressing issues like double counting of carbon credits.

Putting a price on carbon is an important regulatory instrument to support the transition to net-zero, with increased innovation and investments in sustainable technologies.

As you know, the Ministry of Natural Resource and the Environment is working with TGO, SET and SEC, amongst other partners, to move forward on carbon markets, anticipating correctly – major growth in the near term. The Bank of Thailand has also been working closely with other institutions to develop a practical taxonomy and definitions on green financing and sustainability aligned with international standards.

The eventual goal could be to link with regional and bilateral market-based agreements across ASEAN, which would help to establish Thailand as a leader in the future low-carbon economy and support the achievement of global goals.

This is a complex picture. First, the priority is to get carbon markets right domestically, gaining a better understanding of the knock-on effects for the economy as a whole.

This brings me to the role of the UN as a partner and advocate, using climate action as a case in point.

As Thailand is in the process of policy formation, we need to step up research and analysis for a granular assessment of what areas need to be addressed, where the opportunities are, and what sectors of the economy will be most affected.

As a partner, the UN brings cutting-edge expertise and technology, as well as our international networks uniting disciplines for an integrated policy approach.

As just one example, I recently spoke with a CEO in the aluminum processing industry whose company had already reduced emissions by 20%, but needed technical guidance on further reductions across the supply chain.

Providing that support is part of the UN role, making the most of companies’ climate action commitments for their own competitiveness as well as to maximize impact in emissions reductions. As market mechanisms are further developed on carbon trading, this partnership can help Thailand’s private sector to capitalize on new opportunities as they become available.

As part of the Sustainable Development Cooperation Framework, climate action is a top priority for every UN Agency, but I want to highlight UNDP, UNFCCC, UNEP and UNIDO as the key focal points working on climate here in Thailand and engaging at the policy level with Line Ministries.

Across the board, we support building capacities, including through the implementation of pilot projects across the country that are yielding tangible results, which my UNDP colleague will cover in more detail.

As global dynamics are changing, the UN also sees a growing leadership role for Thailand in regional and international forums as an upper-middle income country, which is already being demonstrated, for example as a founding member of the UN Multi-Partner Trust Fund on non-communicable diseases and Mental Health.

In line with the national development strategy on the BCG economy, we’re also ready to support this leadership role in climate action as well by facilitating dialogue and international engagement in areas that play to Thailand’s comparative advantages.

I also want to say that the UN walks the talk when it comes to our own operations. We expect new data to confirm that the entire UN system worldwide achieved climate neutrality in 2020, while ESCAP headquartered in Bangkok is powered by 100% renewable energy.

UN projects working with Government and other partners in Thailand are already supporting reductions in emissions by over 6%.

On an individual note, I’ve been enjoying using TGO’s carbon calculator to determine my own footprint and made some adjustments to lessen my impact, which I’ll recommend to the UN Heads of Agencies as an innovative way to link the personal to the policy.

It is important in my opinion to drive home that point – that climate change is of direct and immediate relevance to our own lives and communities.

In the past couple of months, we have seen welcome momentum, particularly coming from the private sector, which in many cases is setting more ambitious targets for reducing emissions in their own businesses. Those goals, of course, depend on the enabling ecosystem that Government is now formulating.

As many of you know, the UN has joined with Ministries to host two recent roundtables, with leading financial institutions and the Global Compact Network Thailand, to build on previous commitments.

At the Sustainability Forum in October, 43 financial institutions with a total asset base of US$1.3 trillion committed to the UN Principles for Responsible Investment and Banking. The GCNT representing the private sector with more than 85 members has already pledged to reach net-zero by 2050, building on commitments in excess of US$40 billion over 10 years to advance the SDGs.

Innovation is critical to ensure that these partnerships are win-win. In coming months, we are in dialogue to host another roundtable in line with the Biological Diversity Conference in Kunming in April, and we’re seeking to identify and elevate private sector champions for the almost 460 threatened species in Thailand.

These are the practical steps for sustainability that we need, both as socially responsible and essential to remain competitive in a dynamic business environment.

We also need to realize that some businesses, particularly SMEs and those hard hit by the pandemic, will need structural support to transform their operations.

Working with the Ministry of Industry, the GCNT and Federation of Thai Industries, among others, the UN has an important role in this dimension. We need further rigorous analysis and research of the SME terrain, the winners and losers in the greening of the economy, and the policy framework and technical advice that can enable the most players.

From the conversations with leaders from every sector, Government, business and civil society, there are some recurrent themes emerging: 1) there is a broad-based commitment to sustainability and climate action crosscutting these sectors, including the will to scale up ambitions where possible; and 2) the economy needs to move in unison, which makes these consultative platforms all the more important.

We all see the urgency and the practical steps needed for the transition to clean energy, to establish and expand carbon markets, and provide more support for SMEs in this transformation.

To conclude, I strongly urge all of us to keep the channels of communication open. This is going to be a process in which we continue to learn from each other, and the knowledge and talent represented here today, backed by our respective constituencies and organizations, is our greatest resource.

Thank you, and I look forward to further discussions today and in the future.