Reimagining Thailand with a Green Bio-Circular Economy

Thailand wants to modernize and move towards sustainable development through the green bio-circular economy (Bio-Circular-Green or BCG).

Faced with the challenges posed by global economic uncertainty, technological disruption, and the impact of the global pandemic, the Thai government is focusing its efforts on strengthening the country's technological capabilities.

Thailand wants to develop targeted industrial sectors within the framework of 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 business model essentially aims to stimulate the country's economic growth from within by achieving the United Nations Sustainable Development Goals, while maintaining competitiveness in the global economy and catching up with the growing global attention to the principles of the circular and green economy.

By transforming 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-sized enterprises and communities.

Demand for healthcare drives bio-based economy

Thanks to improved human resource capacity and competitive access to raw materials, Thailand has continued to attract strong investments in bio-based businesses, particularly in the functional food, medicine and healthcare, and biochemical sectors.

During 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 €66 million in total.

These projects included the manufacture of amino acids as raw materials for use in pharmaceutical products, and human milk oligosaccharide (HMO), a prebiotic that is a raw material used in powdered milk for infants and adults.

Additionally, a company founded by local doctors has developed and produced an innovative treatment for patients with acute lymphoblastic leukemia (ALL) with CAR T-cell-based advanced therapy drugs (ATMPs).

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

Bioplastic exploitation cycle, from plant to everyday objects before becoming 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 startup has received approval for a project to develop and produce biopharmaceuticals, 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 or plant and animal cells and are an innovative approach to treating many diseases.

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

BCG's economics aims to reduce the value of pharmaceutical and vaccine imports through intensive capacity building in technology and human capital in the field of R&D as well as clinical research and registration of pharmaceuticals and medical devices.

With the aim of developing preventive and targeted healthcare, Thailand's BCG policy also plans to facilitate the use of genetic data and clinical research by researchers and industry.

To boost R&D, innovation, and commercialization in the medical and healthcare sectors, the Thailand Center of Excellence for Life Sciences (TCELS) recently partnered with the private sector to develop and manufacture herbal and conventional medicines derived from cannabis and hemp extracts.

Medical cannabis

Improving agricultural productivity and food innovation

A key element of BCG's economic stimulus strategies is improving 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 economic model, the development of the local agricultural sector involves a more intensive use of digital technologies such as agritech and the upgrading of the standards and value of the country's main agricultural products, such as:

Rice, sugarcane, rubber, tapioca, palm, corn, fruits and vegetables, shrimp and dairy cattle.

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

Thailand is capitalizing on growing demand for plant-based meat and insect protein, especially crickets, as consumers worldwide become increasingly aware of the huge carbon footprint of livestock raised for meat and dairy.

Edible crickets from Thailand.

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

See: When non-vegetarians start loving plant-based meats

The National Agency for Science and Technology Development is intensively promoting modern insect farming and processed proteins from them.

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, by 2024, compared to 4%, or €16.9 billion, in 2019.

See also: Manufacturing the food of the future in Thailand

Reducing carbon footprint

To promote Thailand's transition to a low-carbon economy, the latest national electricity development plan aims for renewable energy to account for 30% of the country's total power generation, or 17 gigawatts, by 2037, 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 recovery of waste and biomass in local communities under the "Energy for All" program.

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

As a leading global supplier of sugarcane and cassava, Thailand is also attracting investment for biodiesel and bioethanol.

As well as for biochemical products, particularly in the Eastern Economic Corridor, the country's high-tech pilot special economic zone that offers cutting-edge R&D complexes and facilities.

In the energy and biochemical sectors, the BCG model aims to promote ethanol production standards for industrial and pharmaceutical grades, as well as the production of ethanol fuel cells for electric vehicles.

To promote the circular economy, the government will support the recycling of waste 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

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

The country also aims to drive 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