World Bank urges Thailand to protect itself from climate change catastrophe

Specifically, the global development bank said Thailand urgently needs to implement a practical strategic framework to deal with severe flooding and drought in order to sustain the country's growth.

The warning was included in the semi-annual report, which forecasts that the Thai economy will continue to expand this year and next year.

The report also highlighted several key challenges for the country to address in order to avoid an economic disruption.

Fabrizio Zarcone, the World Bank's country manager for Thailand, said that despite the stable recovery of the nations' economy due to a faster-than-expected recovery in the tourism sector, Thailand still faces domestic and international risks.

A weaker-than-expected global economy, geopolitical tensions, and persistent inflation are external headwinds, but structural issues within Thailand – an ageing population, climate disruption, declining export competitiveness, high household debt, and political instability – are also impediments to growth, Zarcone said.

These risks were included in the World Bank’s last report.

What is different about the latest report is that it emphasises the necessity of Thailand developing a strategic water management plan to deal with floods and droughts.

Thailand is extremely vulnerable to floods and droughts.

According to the INFORM Risk Index, Thailand currently ranks ninth among flood-prone countries globally, trailing only Vietnam, Myanmar, and Cambodia in the region.

Zarcone was blunt: Thailand must do much more to mitigate climate change in order to avoid catastrophe.

The World Bank estimates that the public costs of floods and droughts are already significant, and that they are likely to increase in the absence of appropriate climate change adaptation.

In 2030, a major flood like the devastating one in 2011 could cost more than 10% of GDP in lost production.

Furthermore, agriculture, which accounts for about 9% of GDP, is particularly vulnerable to water scarcity, particularly highly water-intensive rice production.

The Greater Bangkok area, where over 14 million people live – and the most significant amount of national GDP is generated – is also highly vulnerable to flooding.

Kiatipong Ariyapruchaya, World Bank senior economist for Thailand, said the costs of floods and droughts are already high and will rise in the future as a result of climate change, which will increase the intensity and frequency of natural disasters.

According to the United Nations, the average annual loss from flooding is about $US2.6 billion.

The National Disaster Relief Centre estimates that droughts cost more than 19.1 billion baht between 1989 and 2017.

Shelly Mcmillan, senior water resource management specialist at the World Bank, suggested that Thailand support climate adaptation by better water resource management and drought reduction through a cascading series of infrastructure measures.

She urged Thai policymakers to implement measures to reduce risk, control and protect against risk, regulate and adapt land use, raise awareness and increase preparedness, and mitigate risk.

The press conference also included a session for representatives from both the public and private sectors to discuss floods and droughts.

Boonsom Chonpitakwong, deputy secretary-general of the Office of the National Water Resources, said water management mainly adheres to two regulations, the Water Resources Act (2018) and the 20-year master plan.

The office has already developed 10 approaches to prepare for drought, he said, adding that given the good management from the previous year, this year’s dry season will have less impact.

Tavida Kamolvej, deputy governor of Bangkok, said the capital will use technology in the planning of water management, noting that the capital had already completed the map-making process for flood-risk areas.

Up to 737 locations were classified as at risk of flooding, she said. Of them, 183 require structural changes.

The chairman of Chulalongkorn University's Department of Water Resources Engineering, Anurak Sriariyawat, proposed that the issue of water should not only be considered from a geological perspective but also from an economic and social one.

He explained that, in particular, the subject of social vulnerability as a result of the water problem needed to be discussed in far more depth.

Chuchat Saitin, Amata Water's chief operating officer and vice chairman of the Federation of Thai Industries' Water and Environment Institute for Sustainability, emphasised the significance of better water management system implementation within the manufacturing industry.

He noted that in addition to the government sector developing a systematic practical national water management plan, the private sector should take responsibility for the water it uses.

Every company should use water prudently, and recycle and treat wastewater to reap additional benefits, he said.

Indorama Ventures' chief sustainability officer, Anthony Watanabe, agreed with Chuchat that companies should take responsibility for the water they use, not only in quantity but also in quality.

Zero water contamination and water recycling should also be seriously considered, he added.

He also advised businesses that want to start implementing green water management solutions to focus on what is most needed first, and then scale up when they are more prepared.

Starting with the right mindset and strong commitment would be best for small and medium-sized enterprises (SMEs), he said, adding that the right mindset will guide SMEs to seek the best way to accomplish what they can.

Kiatipong insisted that Thailand must take action to address the effects of climate change. If it fails to do so, the country can achieve moderate annual growth, but that pace will be insufficient to compete with other countries.

If Thailand does not adapt to the challenges of climate change it will have to deal with the consequences, he said.