Taking stock of nation's climate finance

If the ravages of extreme weather worldwide were not enough to convince anyone of the need to urgently address and adapt to climate change, consider a sobering fact delivered by the World Meteorological Organization (WMO).

- Sarinee Achavanuntakul

In its "State of the Global Climate 2024" report, it said last year was "likely the first calendar year to be more than 1.5C above the pre-industrial era, with a global mean near-surface temperature of 1.55 ± 0.13C above the 1850-1900 average".

This makes 2024 the warmest year in the 175 years that have been observed, according to this seminal report which was released in March.

The record-breaking year "underlined the massive economic and social upheavals from extreme weather and the long-term impacts of record ocean heat and sea-level rise"

LEADING CONCERNS

Thailand serves as a microcosm of this urgent need.

The country has already ranked 30th in this year's list of countries that are most vulnerable to climate change, according to human rights organisation Germanwatch.

The United Nations Economic and Social Commission for Asia and the Pacific (Unescap) estimates that Thailand's average annual damage from climate change will amount to almost 1 trillion baht, or 6.6% of the country's GDP per year, under the 2-degree scenario.

The cumulative damage of climate change on Thailand's agriculture sector alone is estimated to be between 17.5-83.8 billion baht per year between 2021-2045.

Naturally, Thailand needs significant investments in climate mitigation to keep up its commitment on the global stage.

In 2024, the Department of Climate Change and Environment estimated that a 30% reduction in carbon emissions by 2030 would require a 5 trillion baht investment in climate finance, while a 40% reduction would require an investment of 7 trillion baht.

TRACKING FINANCE FLOWS

One major drawback for Thailand is the lack of any sense of urgency as well as the financial resources for both climate mitigation (to lower greenhouse gas emissions) and climate adaptation to reduce the negative impacts of climate change.