OPEC taps ADB for green economy

The OPEC Fund for International Development (the OPEC Fund) and the Asian Development Bank (ADB) have entered into a co-financing agreement to back Thailand’s new economic model for sustainable development. The OPEC Fund will provide a technical assistance grant of US$500,000 to support a project aimed at strengthening Thailand’s bio-circular green (BCG) economy. This initiative aligns with Thailand’s ambitious vision of transitioning into a value-based and innovation-driven economy, known as “Thailand 4.0.”

Abdulhamid Alkhalifa, Director-General of the OPEC Fund, stated that the technical assistance would enhance the capacity of the Thai government to integrate the new bio-circular green economy model into national development strategies. The objective is to promote sustainable growth and inclusiveness. Alkhalifa emphasised the shared commitment between the OPEC Fund and the ADB to advancing sustainable development.

Warren Evans, ADB Climate Envoy, expressed the bank’s dedication to developing innovative approaches that can effectively channel climate finance into crucial sectors. The partnership with the OPEC Fund through this project aims to leverage global best practices and apply them to locally relevant approaches and pilot projects, thereby accelerating green development. Evans voiced support for Thailand’s focus on the BCG model as an ambitious economic framework.

Administered by the ADB in collaboration with the National Science Technology and Development Agency of Thailand, the project also receives support from the “Republic of Korea e-Asia Knowledge Partnership Fund” and the Australian government. Thailand’s BCG model aims to promote sustainable agriculture, clean energy, responsible consumption and production, as well as the conservation and responsible use of biodiversity. It is anticipated to attract approximately US$23 billion in new investments by 2030, with an estimated 85 percent contribution from the private sector.

The grant provided by the OPEC Fund will facilitate the identification of investment opportunities and support growth in key sectors within the BCG model, including agriculture and food, energy, materials and biochemicals, wellness and medicine, and tourism. The OPEC Fund and the ADB have a longstanding partnership of over 45 years, co-financing projects with a total contribution of US$1.3 billion from the OPEC Fund. In the previous year, the two institutions established the Project Preparation and Implementation Support Trust Fund, administered by the ADB.