Climate Change & Global Warming: A Crisis We Can’t Ignore
Let’s dive into the reality of climate change and why immediate action is non-negotiable.
The Reality of Climate Change
Rising Global & Thai Temperatures
Global: Earth's average temperature has increased by 1.1°C since pre-industrial times, with the past decade (2011-2020) being the warmest on record (IPCC AR6 WG1 Summary for Policymakers, p.5)
Thailand: Average temperatures have risen by 1.3°C over the past 50 years (TMD Climate Report 2021, p.12)
Projections show Thailand could face 40-50 more hot days per year by 2050 (World Bank Thailand Country Climate Report, p.xi)
Increasing Extreme Weather Events
Global climate-related disasters have tripled in the last 30 years (UNDRR 2020 Report, p.15)
Thailand's 2011 floods caused $46 billion in damages (World Bank Post-Disaster Needs Assessment, p.5)
Droughts now affect 22 provinces annually (FAO Thailand Drought Report 2020, p.3)
Melting Ice & Rising Sea Levels
Global sea levels have risen 20 cm (8 inches) since 1900 (NASA Sea Level Change, Key Indicators)
Thailand's coastline is eroding at 5-25 meters per year (UNDP Thailand Coastal Assessment 2019, p.7)
Record-Breaking Carbon Emissions
Global CO₂ emissions reached 36.8 billion tons in 2022 (Global Carbon Budget 2022, p.4)
Thailand emits 350 million tons annually (TGO National GHG Inventory 2022, p.23)
Energy sector accounts for 72% of Thailand's emissions (IEA Thailand 2021 Report, p.12)
Economic & Health Impacts
Climate change could cost Thailand 6.7% of GDP by 2100 (ADB Economics of Climate Change, p.5)
Air pollution causes ~50,000 premature deaths annually (WHO Thailand Country Profile 2021)
Global economic losses from climate disasters exceeded $313 billion in 2022 (Aon Weather Report 2023, p.3)
Why Carbon Footprint Action Is Now a Business Imperative
1. Thailand's Export Crisis
EU Carbon Border Tax (CBAM): Thai aluminum exporters will face an 8.6% tariff starting 2026 unless they provide verified carbon emissions data, as confirmed by the Thai Ministry of Commerce’s latest trade advisory.
Source: Thai Customs Dept. Alert No. 45/2023, Table 2Japanese Buyer Requirements: 78% of Japanese companies operating in Thailand plan to cut suppliers who fail to meet carbon disclosure requirements by 2025, according to a JETRO Bangkok survey of 200+ firms.
Source: JETRO Bangkok "2023 Supply Chain Survey", p.8CP Food’s Market Risk: Charoen Pokphand Foods disclosed to the SET that €35M (฿1.5B) of annual EU revenue is at risk due to non-compliance with new carbon labeling laws for seafood exports.
Source: CPF SET Disclosure No. KDMS 067/2023Auto Part Costs: The Federation of Thai Industries warns that Tier 2 auto parts suppliers lacking carbon certifications face 12% higher production costs due to lost efficiency incentives and buyer penalties.
Source: FTI Auto Parts Committee Report 2023, p.12Textile Premiums: Surat Thani garment factories using carbon-labeled products secured 7% higher prices from EU buyers, as documented in the DITP’s export success case studies.
Source: DITP "Success Stories: Carbon Labeling", Case #22
2. Thai Financial Realities
Green Loan Discounts: Kasikornbank offers 0.75% lower interest rates for SMEs that achieve ESG compliance, as detailed in their 2023 sustainability report’s lending terms.
Source: K-Sustainability Report 2023, p.18BOI Tax Breaks: The Board of Investment grants 50% corporate tax reduction + machinery import duty waivers for manufacturers meeting green factory standards under Measure 5.10.
Source: BOI Measure 5.10 AnnouncementSET Disclosure Mandate: All Thai-listed companies must disclose Scope 1 & 2 emissions by 2024, with Scope 3 reporting phased in by 2026 per SEC Notification No. KorJor. 12/2023.
Source: SEC Announcement re: ESG ReportingInsurance Surcharges: Factories without climate adaptation plans pay 20% higher premiums, according to the Thai General Insurance Association’s 2023 risk guidelines.
Source: TGIA Climate Risk Premium GuidelinesInvestor Exodus: 62% of Thai venture capital funds now exclude startups lacking ESG policies, as reported in DealStreetAsia’s 2023 investment trend analysis.
Source: DealStreetAsia "Thai VC Trends 2023"
SME Vulnerabilities: Why Thai Small Businesses Are at Risk
Knowledge Gap in Carbon Accounting: Only 31% of Thai SMEs understand how to measure their carbon footprint, according to a UTCC survey, leaving most unprepared for new regulations. Without this expertise, businesses risk fines, lost contracts, and exclusion from supply chains as global buyers demand emissions data.
Source: UTCC SME Climate Readiness Report, p.9Lack of Digital Tools for Tracking: 67% of SMEs still use manual spreadsheets or paper records to track energy use, making it nearly impossible to comply with real-time reporting requirements. This inefficiency leads to higher audit costs and missed reduction opportunities.
Source: DEPA Digital Adoption Survey 2023Rising Operational Costs: Carbon compliance increases production costs by 9-18% for Thai SMEs, according to the Thai Chamber of Commerce. Smaller factories struggle to absorb these expenses, putting them at a competitive disadvantage against larger corporations with dedicated sustainability budgets.
Source: TCC SME Cost Analysis 2023Supply Chain Exclusion: 44% of Thai exporters lost orders in 2023 because they couldn’t meet buyer ESG requirements, per the Department of Foreign Trade. Many SMEs rely on just 1-2 major clients, making them especially vulnerable to sudden policy changes.
Source: DFT "Export ESG Impacts", Case StudiesBarriers to Financing: SMEs without sustainability plans face 2-3x longer loan approval times, as banks now prioritize climate risk assessments. The Bank of Thailand found that only 12% of small businesses qualify for green loans due to lack of verifiable emissions data.
Source: BOT SME Loan Approval Study