Resident Coordinator's Remarks at the Launch of Thailand’s Integrated National Financing Framework and Inclusive Insurance and Risk Finance Initiative

Your Excellency Minister of Finance Arkhom Termpittayapaisith,

Deputy Secretary General Jomkwan Kongsakul,

Distinguished participants, UNDP colleagues, and friends.

It is my pleasure to address you today about two extremely timely and important initiatives that Thailand is undertaking.

As you know, the world is facing several interlocking crises that have severely constrained government spending. This makes it vital to unlock additional financing through domestic markets to accelerate green growth and the SDGs.

At the same time, the global financial system continues to evolve, and with this come added risks and pressure points that need addressing.

Just as importantly, climate change is posing daunting challenges that will test our collective resolve as we continue to make progress on the SDGs and protect our planet from further harm. This is relevant in Thailand as it is especially affected by a changing climate.

With all that said, we have reason for optimism and Thailand’s case demonstrates that.

Minister Arkhom, Thailand has done very well in mobilizing financial resources for ESG-related initiatives with the government and private sector together having raised $10 billion for them over the past years.

This is very encouraging. I would like to congratulate your government, for its forward-looking stance, which enables Thailand to leverage its financial markets to mobilize funding through ESG-related bonds towards transformative growth in partnership with the private sector.

Most of these resources are directed towards essential infrastructure such as Bangkok’s electric monorail network, wind farms, and power plants for renewable energy.

We have seen a similar approach taken in Indonesia where the UN led by UNDP has partnered with the Government for issuance of two SDG bonds for USD 790 million which were 2.5 times oversubscribed. The proceeds were allocated towards SDG related outcomes, enabling vaccinations of over 30 million children, scholarships for 11 million students and setting-up of over 2,100 wireless communication systems in remote areas of the country.

We can seize this momentum to continue turning Thailand into a climate resilient, prosperous, and inclusive nation in alignment with the BCG model, 13th National Economic and Social Development Plan and the SDGs.

This will require additional financial resources for targeted investments. Analysis by ESCAP suggests that we need an additional 50 baht per person per day in Thailand to achieve the SDGs on schedule.

At the midway point to the 2030 Agenda, we are at a key moment where we can raise ambition and support for the SDGs.

In this context, the INFF provides 3 key solutions for Thailand.

One, it offers a comprehensive analysis of financing flows of existing public and private investments to accelerate SDG progress.

Two, it helps enhance the realignment of public and private investments to identify gaps to direct resources to SDGs that require acceleration. In the context of Thailand, analysis suggests that a third of the SDG indicators need acceleration to meet the 2030 target.

And three, it provides innovative financing strategies at the subnational level in support of SDG localization. UNDP in partnership with local government and communities are already leveraging crowd funding and more recently biodiversity user fees to protect and conserve habitats. This allows UNDP to test green and gender-responsive financing solutions from the bottom up.

In all this the UN will be a dependable partner for Thailand.

Already UNDP, in partnership with the Insurance Development Forum, is exploring ways to incorporate risk-financing to scale up coverage for the most vulnerable through private sector engagement.

Inclusive insurance will require instruments that can protect workers in the informal economy, including micro and small enterprises as these are often the hardest hit by economic downturns and other setbacks.

For instance, the national crop insurance scheme covers only two crops: rice and corn. This leaves much of the agricultural base unprotected.

Today’s launch will help inform the reshaping of financing policies and frameworks as we continue rethinking Thailand’s pathway towards resilient and inclusive sustainable development in line with the SDGs.

Your Excellency, let me now hand over to you for your keynote speech.

I am very much looking forward to your insights.

Thank you.