NESDC: Urgent reform needed for Thai agriculture, energy transition

FRIDAY, OCTOBER 11, 2024

The National Economic and Social Development Council (NESDC) has warned that Thailand must urgently improve its agricultural production while transitioning to clean energy.

This dual transformation is essential to bolster the country's ecosystem, food security, and economic resilience in the face of intense global geopolitical challenges and severe climate change impacts, said the NESDC’s Witsanu Attavanich.

Speaking at the NESDC's 2024 annual meeting on the theme “Geopolitical Uncertainty: Navigating the Future”, in September, Witsanu said the world had reached a critical juncture regarding food and energy security. He emphasised that Thailand must not just survive these crises but also seize the opportunities they present to thrive.

Global climate and geopolitical change would have significant impacts on various sectors, including Thailand's agricultural productivity, said Witsanu. He cited the recent devastation caused by Typhoon Yagi as an example of the country’s vulnerability.

Meanwhile, the Paris Climate Agreement will likely lead to countries importing more low-carbon products, potentially threatening the competitiveness of Thai agricultural exports.

Witsanu said these challenges were compounded by Thailand's outdated and inefficient agricultural practices, which have left the country in a precarious position as it aspires to become the world's kitchen.

NESDC: Urgent reform needed for Thai agriculture, energy transition

Research indicates that Thailand’s yield per hectare of rice and durian is expected to fall by 10-14% by 2050. This decline is attributed to geographical variability, natural resource location, war, and climate change, all of which have significant implications for food and energy security.

Russia’s ongoing war against Ukraine has exacerbated the situation, causing fluctuations in global crude oil prices. As Thailand relies heavily on fossil fuels and lags behind many countries in renewable energy adoption, the country is particularly vulnerable to rising oil prices, Witsanu noted.

Thailand has set a goal of net zero carbon emissions by 2065.

"The net zero policy in the food system will ensure that carbon emissions are no longer free in the future. If we want to export Thai agricultural products to the global market, we will need to charge higher prices," Witsanu explained.

He also noted that Thailand's renewable energy usage ranked 134th globally in 2022, at around 15%, significantly lower than the global average.

NESDC: Urgent reform needed for Thai agriculture, energy transition

In contrast, 65 countries utilise more than 50% renewable energy, with Brazil and Thailand’s regional rival Vietnam leading the way. Witsanu warned that Thailand's failure to adapt to energy trends could have a detrimental impact on food security.

 

“The price of agricultural and food products will rise due to the current demand for electricity, which is still driven by economic demands," he stated. "We haven't paid enough attention to the environment."

NESDC: Urgent reform needed for Thai agriculture, energy transition

To address these challenges and improve food security, Witsanu proposed the following five strategies:

  • Reform Agricultural Policy: Transition from unconditional government relief to a conditional approach that educates farmers and provides incentives for adopting climate-smart agricultural technologies.
  • Increase Agricultural Consultants: Address the shortage of experts who can guide farmers through the crisis.
  • Establish an Integrated Food System Agency: Coordinate policies across various agencies and assess future risks.
  • Implement a Greenhouse Gas Emission Traceability System: Track emissions throughout the agricultural and food product chain.
  • Invest in Carbon Credit Evaluation Personnel: Develop domestic expertise to avoid reliance on foreign companies.

These measures would strengthen Thailand’s agricultural sector, enhance food security, and position the country for a more sustainable and resilient future, he said.