Resident Coordinator's Remarks at the Launch of Thailand SDG Investor Map

Distinguished guests, it is my pleasure to welcome you to the launch of this initiative, which will strengthen our means of achieving the SDGs through the increased and vitally important contributions of the private sector.

As you know, the SDGs are crucial for transforming societies and require strategic financing decisions to marshal resources where they are most needed and can have the greatest impacts.

In support of this, the UNDP-led SDG Investor Map is designed to enable countries to identify investment priorities through evidence-based insights generated locally.

Progress through this tool has been achieved across many countries, including in Turkey, Colombia, and South Africa. I would like to spend a moment on these cases to illuminate the potentials for Thailand.

In Turkey, the SDG Investor Map led to redirecting private investments in the construction and operation of wastewater treatment facilities through innovative wastewater technologies. In Colombia, it has expanded SMEs’ access to credit. In South Africa, the initiative translated into private sector investments to refurbish inner-city buildings for affordable housing.

All these projects are generating nearly 15% of returns while simultaneously tackling key SDG-related challenges.

I look forward to Thailand being soon cited as a best practice. To this end, the UN’s partnership with the SEC and MOF will be critical to further unlock private finance for SDG acceleration.

Let me now address three key opportunities which Thailand can capitalize to strengthen sustainable development finance.

The first crucial area is about increasing and systematizing the role of the private sector in SDG investments.

Analysis tells that 28% of investment in country over the last financial year came from public sources with the private sector constituting the rest.

Pre-pandemic estimates by ESCAP also tells us that achieving the SDGs in Thailand will cost 50 baht per person per day, in additional investments, between 2020 and 2030.

This makes a clear case for a more comprehensive and fit-for-purpose financing framework that synergizes public and private finances to support the country’s SDG progress.

As the current global economic slowdown will place further stresses on the public financial resources, the spotlight will be even more on the private sector.

Investing in innovative financing mechanisms will become imperative to synergize the government, private sector, and capital markets to generate the additional resources needed for this purpose.

The second key opportunity is for leveraging capital markets to unlock financing for a green economic transformation.

The UN together with the SEC is in dialogue with bankers, investors, and asset managers to explore transitional financing in support of climate action.

For example, the Thailand Bankers Association is considering establishing a minimum threshold for green investments as a potential way forward.

The SDG investor map can contribute by identifying viable bio-circular-green investments as a catalyzer to environmental resilience.

The third key opportunity is the development of a holistic risk financing strategy with a focus on inclusive insurance.

In partnership with the Insurance Development Forum, UNDP is exploring ways to incorporate risk-financing fundamentals into key development processes to scale up coverage for the most vulnerable through greater private sector engagement.

Inclusive insurance will require instruments that can protect workers in the informal economy, including micro and small enterprises, as they are often hardest hit.

With the SDG investor map Thailand can be amongst the first few countries to formulate such a risk-informed integrated financing strategy to uphold the Leave No One Behind principle.

Ladies and gentlemen, the SDG Investor Map can standardize private sector engagement in support of sustainable investment in Thailand.

However, success of this approach will depend on the solid partnerships with the Ministry of Finance and SEC, the private sector and capital markets together with the UN.

I am very much looking forward to the panel discussion on the way forward for Thailand.

Thank you.