Thailand - Country Climate and Development Report : Chapter 2 - Climate Change and Development

Overview & Synopsis

Thailand is, in many respects, a development success story, having rapidly transitioned from an agriculture-based economy to one that is modern, industrialized, and export-driven. But Thailand’s recent growth and development experience has been less rosy. At the same time, Thailand’s economic development is exposed to the physical impacts of climate change because of the susceptibility of key industries to flooding, drought, heat stress, and other extreme weather events. Moreover, climate change disproportionately impacts vulnerable populations in Thailand, a country where high inequality is a key constraint to sustainable and inclusive growth. The rapidly changing external environment is posing further challenges to the outlook. The net-zero transition is a global shift that will have particularly important implications for Thailand’s trade and ability to attract foreign direct investment. Finally, Thailand’s export-driven growth model faces mounting pressures and will likely falter unless the country takes decisive steps to mitigate emerging risks and seize new opportunities. In the face of these challenges, Thailand aspires to become a resilient, green, and high-income economy - an ambition that lies at the heart of this report.