As Southeast Asia’s second-largest economy, Thailand plays a key role in shaping the region’s economic future. The country has set an ambitious and forward-looking vision to combine economic growth with environmental sustainability. Under its second Nationally Determined Contribution, Thailand has committed to reducing greenhouse gas emissions by 47% from 2019 levels by 2035 and achieving net‑zero greenhouse gas emissions by 2050. At the same time, Thailand aims to position itself as a regional leader in sustainable industry and innovation – guided by its Bio-Circular-Green economy model – with the objective of creating opportunities for higher value-added economic activities and high-skilled employment.
Transforming Thailand’s manufacturing sector will be key to reaching these goals while boosting competitiveness. Within the manufacturing sector, the petrochemical industry and plastics value chain stand out for their strategic importance to Thailand’s economy. The country is the largest petrochemical producer within the Association of Southeast Asian Nations (ASEAN) and the third-largest bioplastics manufacturer in the world. Building on this strong industrial base and abundant biomass resources, Thailand aims to become a regional hub for bioplastics by 2027. Notably, Thailand can draw on its well‑developed capital markets to finance and sustain the transformation of these sectors.
This report, Implementing the OECD Framework for Industry’s Net-Zero Transition in Thailand: Decarbonising the Petrochemical Sector and Plastics Value Chain, was developed under the OECD Sustainable Infrastructure Programme in Asia. It applies the OECD Framework for Industry’s Net-Zero Transition – a practical, step-by-step approach to help emerging and developing economies identify enabling conditions and financing solutions to accelerate industrial decarbonisation. For Thailand, the Framework focuses on three priority solutions aligned with its national strategies: bioethanol to bio-ethylene, bio-based and biodegradable plastics and carbon capture and storage.
The report offers evidence-based and tailored recommendations to improve the competitiveness and unlock investment in these technologies. It highlights the importance of combining targeted financing instruments with coherent policy measures, regulatory reforms and demand-side actions to foster viable markets for low-emission products. It also explores the links between petrochemical decarbonisation, the plastics value chain and efforts to reduce plastic pollution, highlighting opportunities for greater policy alignment.
This work is the result of a close collaboration between the OECD, the Office of the National Economic and Social Development Council (NESDC) and a broad group of stakeholders from government, industry, finance and international organisations. It builds on a long-established partnership between Thailand and the OECD, which continues to strengthen as Thailand moves forward on its OECD accession journey.
The recommendations set out in this report can serve as a resource for policymakers, industry leaders and financial institutions to support implementation efforts towards a competitive and sustainable industrial future in Thailand. The insights generated are also relevant to other countries seeking to scale-up bio‑based plastics and advance carbon capture and storage deployment across multiple sectors. Looking ahead, the OECD will continue to support the Government of Thailand in implementing these recommendations, including through tailored analysis, capacity building and knowledge-sharing, to translate these recommendations into concrete investment and implementation outcomes.
Matthias Cormann
Secretary-General
OECD