Re-imagining Thailand with a green bio-circular economy

Thailand wants to modernise and move towards sustainable development through the Bio-Circular-Green (BCG) economy.

Faced with the challenges posed by the uncertain global economy, technological upheaval and the consequences of the global pandemic, the Thai government is focusing on building the country's technological capacity.

Thailand wants to develop targeted industry sectors under the bio-circular and green economy model.

Under a framework that will run from 2021 to 2026, the Thai government will strengthen the country's science, technology and innovation capabilities to boost the competitiveness of players in the agriculture and food, healthcare and pharmaceutical, bioenergy and biomaterials, and tourism and creative economy sectors.

The BCG economic model focuses on stimulating the country's economic growth from within by achieving the UN Sustainable Development Goals, while maintaining competitiveness in the global economy and catching up with the growing global focus on the principles of the circular and green economy.

By turning waste into usable products, regenerating natural systems, shifting to greener products and investing in energy efficiency and renewable energy, the Thai government expects the circular and green economy to create new investment opportunities among small and medium enterprises and communities.

Healthcare demand drives the biobased economy

With improved human resource capacity and competitive access to raw materials, Thailand has continued to attract strong investment in biobased businesses, particularly in the functional food, medical and healthcare, and biochemical sectors.

In the first quarter of 2021, the Board of Investment (BOI) approved promotional incentives for five new projects in the field of advanced biotechnology, with a combined investment value of approximately EUR 66 million in total.

These projects included the manufacture of amino acids as raw materials for use in pharmaceuticals, and human milk oligosaccharide (HMO), a prebiotic that is a raw material used in infant and adult milk powder.

In addition, a company founded by local doctors has developed and produced an innovative treatment for patients with acute lymphoblastic leukaemia (ALL) with advanced therapy medicines (ATMP) based on CAR T cells.

Another company received incentives from the BOI for the production of PHA (Polyhydroxyalkanoate) bioplastic and its compound developed from organic waste.

Cycle of exploitation of bio-plastic, from the plant to everyday objects before becoming an organic material again.

The company will use PHA bioplastic to manufacture a wide range of packaging products for food and medical supplies.

Meanwhile, a Thai start-up has received approval for a project to develop and produce bio-pharmaceuticals, including plant-based vaccines and therapeutic proteins, using molecular pharmacy technology.

Thailand's investment in R&D (research and development) for biologics has also increased due to the growing threat of pandemics and rare diseases.

Also known as biologics, these products are developed from living cells such as bacteria, plant and animal cells and are an innovative approach to the treatment of many diseases.

Data from the Thai Food and Drug Administration (FDA) showed that the country's expenditure on organic products has increased significantly from €0.4 billion in 2009 to €1.4 billion in 2018, with most of the additional expenditure attributed to imports.

The OCG economy aims to reduce the value of imports of pharmaceuticals and vaccines through intensive capacity building in technology and human capital in R&D as well as in clinical research and registration of pharmaceuticals and medical devices.

In order to develop preventive and targeted health care, Thailand's BCG policy also includes facilitating the use of genetic data and clinical research by researchers and industry.

To stimulate R&D, innovation and commercialisation in the medical and healthcare sectors, the Thai Centre of Excellence for Life Sciences (TCELS) has recently partnered with the private sector for the development and manufacture of herbal and conventional medicines derived from cannabis and hemp extracts.

Medical cannabis

Improving agricultural productivity and food innovation

A key element of strategies to stimulate the BCG economy is to improve the productivity of the agricultural sector and the economic value of agricultural products.

This will benefit the majority of the Thai population and respond to the global trend of increased health and environmental awareness.

Under the BCG business model, the development of the local agricultural sector involves more intensive use of digital technologies such as agritech and upgrading the standards and value of the country's main agricultural products, such as :

Rice, sugar cane, rubber, tapioca, palm, maize, fruit and vegetables, shrimp and dairy cattle.

As well as promoting higher value-added products, such as herbs and alternative proteins.

Thailand is benefiting from the growing demand for plant-based meat and insect protein, including crickets, as consumers around the world become increasingly aware of the huge carbon footprint of livestock raised for meat and dairy products.

Edible crickets from Thailand.

Although the alternative protein industry is still in its infancy in Thailand, the growing demand is expected to create a boon for farmers who grow amino acid-rich crops such as soybeans and cereals.

See : When non-vegetarians start to like plant-based meats

The National Agency for the Development of Science and Technology is intensively promoting modern insect farming and the processed proteins derived from it.

The Thai government is also increasing its support for innovators of new foods for groups such as patients and the elderly, as well as functional foods.

With these measures, the government aims for the food industry to contribute 5 % of GDP, or €23 billion, in 2024, up from 4 % or €16.9 billion in 2019.

See also: Food manufacturing of the future in Thailand

Reducing the carbon footprint

To promote Thailand's transition to a low-carbon economy, the latest National Electricity Development Plan aims for the country's renewables to account for 30 % of total power generation, or 17 gigawatts, by 2037, a doubling from the current 15 %.

Solar panels on a dam in Ubon Ratchathani, Thailand. Photo: egat.co.th

This projection reflects the government's policy to facilitate the use of rooftop solar energy, large-scale private sector renewable energy projects and the use of waste and biomass in local communities under the Energy for All programme.

Thailand's energy master plan also calls for state-owned enterprises to lead investments of around €5.37 billion in smart grid, energy storage and blockchain to ensure efficient and resilient energy transmission that connects communities' energy production.

As the world's largest supplier of sugarcane and cassava, Thailand is also attracting investment for biodiesel and bioethanol.

As well as for biochemicals, especially in the Eastern Economic Corridor, the country's pilot high-tech special economic zone that offers state-of-the-art R&D complexes and facilities.

In the area of energy and biochemicals, the BCG model aims to promote ethanol production standards for industrial and pharmaceutical grades, and the production of ethanol fuel cells for electric vehicles.

To promote the circular economy, the government will support the recycling of waste materials such as sugarcane leaves and rice straw in each region.

It will also reduce food loss and waste and support more environmentally friendly construction and the development of smart cities.

Linking tourism to the creative industry

As tourism has long been a key driver of Thailand's economy and employment, BCG Economics seeks to link tourism with targeted markets such as wellness tourism, food culture, ecotourism, arts and sports.

The country also intends to lead the tourism sector towards greater sustainability through effective tourist management, monitoring of tourism impacts, preservation of natural resources and cultural heritage.

It also aims to promote less-visited cities by improving transport networks and using digital platforms.

Source: Bangkok Post