At a Glance
|Start Date||Q1 2017|
|Approved Budget||USD 1 273 000|
Under its Nationally Determined Contribution (NDC) commitment, Thailand aims to reduce GHG emissions by 20-25% from projected BAU levels by 2030. This forms part of the government’s vision for climate-resilient and low-carbon growth and is aligned to both the current 5-year National Economic and Social Development Plan and Thailand’s Climate Change Master Plan.
To meet this commitment, there is an urgent need to systematically cascade the economy-wide NDC target into sectoral targets, so that sector-specific plans can be formulated and implemented. The industrial sector, which represents 38% of GDP and at least 23% of emissions, is particularly crucial to success and is therefore the focus of this project64. Shifting industry toward a low emissions pathway will not only increase the country’s competitiveness in the world market, but also boost opportunities for green job creation.
The Government of Thailand’s (GoT) Industry GHG Reduction Roadmap, which was developed with GGGI support, focuses on three high impact industrial sectors: automotive parts, palm oil, and frozen seafood. All of these sectors are crucial to consider in NDC implementation. From the study, it was found that automotive part industry has the highest GHG emissions and very high emissions growth. Improving energy efficiency of the auto parts sector could therefore significantly contribute toward Thailand’s NDC targets. However, companies lack the technical and financial capacity to implement energy efficiency measures, which has been identified as the key focus area of this sector65. Thus, acceleration on energy efficiency measures, not only in the auto part industry, shall be enhanced through identifying bankable projects with an aim to demonstrate and accelerate green investment in the Thai industrial sector.
This project is a concrete and necessary step toward NDC implementation and long-term sustainable development of the industrial sector. Based on successful Roadmap work during WPB 2015-16, the GoT has requested GGGI for further cooperation and support on NDC implementation to ensure that the country can successfully achieve its NCD targets.
Building on 2015-16 Work
This project will build on GGGI’s work in 2015-16, which focused on working with the Ministry of Natural Resources and Environment to develop a practical and implementable Industry GHG Reduction Roadmap for three industrial sectors: palm oil, automotive parts, and frozen seafood. The Roadmap was successfully developed, and well received by related stakeholders especially the government and the industries.
Since signing the Paris Agreement, the GoT has confirmed its intention to include this roadmap as part of an expanded Action Plan to deliver its NDC commitments across the entire industrial sector, and has sought GGGI’s assistance. GGGI will leverage the methodology implemented to formulate the GHG Reduction Roadmap and strong relationship with relevant stakeholders, to develop the NDC Action Plan in 2017-18. Built on the valuable results of the Roadmap, GGGI will move toward the implementation side of the organizational value chain by working to develop bankable projects, and providing capacity development on NDC.
PROJECT OUTPUTS FOR 2017-18:
- Develop an NDC Action Plan for the industrial sector and submit to government
- Develop proposals for 2 bankable projects aligned to the NDC Action Plan and submit to potential funders
- Deliver 3 training events to strengthen capacity of key stakeholders to implement NDC Action Plan
PROJECT OUTCOMES FOR 2017-18:
- Government adopts the NDC Action Plan for implementation
- Funding approved for 2 bankable projects to reduce GHG emissions from the industrial sector
The outcomes of the project are that the GoT adopts, and implements plans and measure of the NDC Action Plan for the industrial sector. The project outputs are as follows.
NDC Action Plan for industrial sector developed and submitted. Thailand’s NDC commitment will be assessed to bridge the economy-wide target with sector specific quantified targets and to identify methodological gaps. A report on the potential contribution of the industrial sector to Thailand’s NDC will be completed to determine the potential contribution of the industrial sector to the NDC target. Challenges in NDC implementation (e.g. institutional financing and technology) will be identified. Based on the results, GGGI will develop a NDC Action Plan for the Industrial Sector outlining priority emission reductions measures for the industrial sector, potential implementation mechanisms and key elements of a monitoring, review, and verification framework to track progress toward NDC goals. The Action Plan will be validated through stakeholder dialogues.
NDC Implementation supported through the development of bankable projects. GGGI will help to kick-start green investment in the industrial sector by identifying potential green projects, working with the projects to prepare highquality proposals or business plans, and effectively matching them with potential investors. In 2016, GGGI is conducting a scoping of Thailand’s NDC to identify potential projects with transformational impact. This exercise will be coordinated with the preparation of the NDC Action Plan to ensure complementarity. Potential projects will then move to bankable stage, subject to availability of funding from GGGI and/or partners, after the finalization and acceptance of the NDC Action Plan. GGGI aims to move at least two green projects to financing in order to address the downstream challenges of NDC implementation by leveraging and mobilizing financial resources.
Three training events delivered to strengthen NDC implementation capacity. This component aims to develop national capacity for long-term NDC implementation through policy and budget planning and regulatory mechanisms. This also includes seeking funds for “readiness support” to help build the institutional capacity required to access international sources of climate finance, such as the Green Climate Fund. Capacity development needs for both the government and private sector consistent with NDC implementation and green project development will be identified. On the basis of this assessment, capacity development activities will be planned and delivered to relevant government and private sector stakeholders.
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