Driven by concerns of energy security high dependence on imported fuels and environmental pollution due to improper waste disposal, Thailand has placed increasing emphasis on waste-to-energy options through its 10-year Renewable and Alternative Energy Development Plan (AEDP 2012-21). The plan presents a target of a 25% contribution of renewable and alternative energy sources by 2021, of which 30% is to come from bioenergy and municipal solid waste, representing an important step in the transition to a low-carbon economy.
The focus on waste and agricultural residues in the AEDP is a good example of policy coordination and alignment with decentralised implementation. The AEDP objectives are aligned with those of the National Economic and Social Development Plan (NESDP) as well as laws for municipal level governance. As part of the strategy, pilot implementation targets city level actions aimed at scaling up capacity building and replication with increased efficiency in other cities within and outside of Thailand. The strategy is highly integrated at various levels of governance in terms of its strategic goals and its mode of implementation. Its linkages with national goals of energy security, climate change and export promotion are notable and demonstrate clear political direction and leadership.
- Pollution control department
- Ministry of Energy
- Ministry of Interior
- Ministry of Natural Resources and Environment
- Thailand Greenhouse Gas Management Organization (TGO)
A Low Carbon City Fund is being established to finance the LCC program (see Figure below). The LCC Fund mobilises resources through philanthropic contributions as well as voluntary buyers of the VERs through the Thailand Carbon Offset Program (T-COP). Financial requirements to develop core components of the preparation phase of LCC (2014-16) have been estimated to be USD 3.08 million.
There is a government co-investing scheme (ESCO fund) with initial volume of USD 17 million. Revolving Funds stimulate and leverage commercial investments through familiarising commercial banks with EE, RE lending market and opportunities. Participating banks include the Bangkok Bank (BBL), Bank of Ayudhya (BAY), Bank Thai (BT), Thai Military Bank (TMB), Siam City Bank (SCIB), Siam Commercial Bank (SCB), Thai Farmers Bank (TFB), Exim Bank (Exim), Krung Thai Bank (KTB), SME Bank (SME). The initial size of the fund was USD 125 Million. Further international support through GEF and UNDP’s LECB program. The UNDP-LECB program is jointly funded by the European Commission; the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) and the Australian Government.
- World Bank’s Partnership for Market Readiness (PMR)
- UNDP-LECB Programme; Global Environment Facility (GEF)