Thailand's economy in danger: loss of nature threatens billions!

Thailand's economy in danger: loss of nature threatens billions!

Thailand faces major challenges in the near future, affecting both the environment and the economy. The loss of nature is seen as a risk as urgent as climate change itself. According to Bangkok Biz News It is developed that companies must change their targets towards “Nature-Positive” in order to ensure long-term stability in their supply chain. This shift is crucial to reduce the Thai economy's dependence on nature and avoid massive revenue losses.

If no action is taken, Thailand could lose up to $553 billion in GDP by 2050. This dire forecast is based on analysis showing that nature plays a significant role in various economic sectors such as agriculture, fishing and tourism. Disturbances in these sectors can be directly linked to the decline in biodiversity and natural resources.

The effects of climate change

Climate change is already having a noticeable impact on Thailand, particularly in the areas of agriculture and fishing. According to a report by the World Bank Agricultural production losses of between USD 2.9 and 5.4 billion are possible, while up to USD 26.2 billion of production value in fisheries is at risk. These figures highlight that heat stress and extreme weather events can cause extraordinary losses, placing severe strain on food supplies and the economy.

What is also particularly alarming is that the costs associated with coastal erosion and sea level rise could increase by around $6 billion in the long term. Coastal cities and economic activities are particularly at risk from these natural events. A major flood event in 2030 could reduce GDP by up to four percentage points. In addition, ongoing environmental destruction requires new strategies and political approaches.

Strategies to combat nature loss

In this context, Thailand introduced the Bio-Circular-Green (BCG) model in 2021 to promote a sustainable, low-carbon economy. This model is used by the World Bank to strengthen the green agenda and better predict and mitigate economic impacts. However, the vision goes beyond mere environmental management. The Nature Positive Initiative requires companies to set goals that result in more natural resources being regenerated than they consume.

A bolder approach is needed to address the simultaneous crisis of nature loss and economic decline, according to the World Bank report. This could also be done through reforestation initiatives, which could bring significant economic benefits. It is estimated that strategic policies could reduce losses by 68 percent and create up to $54 billion in cumulative wealth.

Future climate goals and initiatives

At the international level, Thailand set ambitious climate goals at COP26 in Glasgow. This includes achieving carbon neutrality by 2050 and net-zero emissions by 2065. Nationally determined climate contributions (NDCs) are to be reduced by 30 to 40 percent by 2030, which represents a revision of the previous target, which was 20 percent. A comprehensive national adaptation plan to deal with the consequences of climate change was approved in April 2023.

In addition, Thailand will develop its first law on biological diversity (Biodiversity Act) to strengthen the protection of nature. This is in line with the Post-2020 Global Biodiversity Framework, which forms the basis for Thailand's biodiversity strategy.

In conclusion, Thailand needs to take action in the face of significant threats from biodiversity loss and climate change. The connection between ecosystem health and economic stability must come to the fore so that Thailand can protect both its environment and its economy in the long term.