This report was developed as part of the programme of work of the OECD Working Party on Finance and Investment for Environmental Goals (WPFIEG) under the Environment Policy Committee (EPOC). It was implemented under the Sustainable Infrastructure Programme in Asia (SIPA), which is supported by the International Climate Initiative (IKI) and the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety.
On 17 June 2024, the OECD Council decided to open accession discussions with Thailand. The Roadmap for the OECD Accession Process of Thailand was adopted on 10 July 2024. In accordance with the Roadmap, Thailand will undergo in-depth reviews by the OECD technical committees listed in the Roadmap. This report was prepared under the OECD Thailand Country Programme Phase 2 (2023 - 2026) and separately from Thailand’s accession process. This report does not prejudge the recommendations that may be suggested in the process.
Building on fruitful co-operation between the Government of Thailand and the OECD, this report supports Thailand’s efforts to realise its industry transformation. It is one of the key outputs of the OECD Clean Energy Finance and Investment Mobilisation (CEFIM) programme. The CEFIM programme aims to support governments in emerging markets and developing economies (EMDEs) to strengthen domestic enabling conditions to attract finance and investment in renewables, energy efficiency and industry decarbonisation.
This report builds on the approach proposed in the OECD Framework for industry’s net-zero transition, a step-by-step approach designed to help EMDEs identify financing solutions and enabling conditions that can accelerate industrial transformation. The report provides recommendations to improve the competitiveness and help unlock finance and investment for decarbonising the petrochemical sector and the plastic value chain in Thailand. It focuses on three options: i) bioethanol to bio-ethylene, ii) bio-based and biodegradable plastics and iii) Carbon Capture and Storage (CCS).
The report was authored and co-ordinated by Cécile Seguineaud (OECD Environment Directorate), with valuable inputs from PXP Sustainability. The work was conducted under the supervision of Deger Saygin, Team Lead of the CEFIM Industry programme, Yuval Laster, Head of the Finance, Investment and Global Relations Division and Mathilde Mesnard, Deputy Director at the OECD Environment Directorate.
The author is extremely grateful to the PXP Sustainability team for the support in preparing this report and for facilitating the project meetings held in Bangkok: Piya Kerdlap, So Pyay, Worabhorn Pathanatecha, Zwe Yin Phyu, Thunyaphuk Wannasri.
The OECD expresses its sincere appreciation to the Office of the National Economic and Social Development Council (NESDC) for the excellent co-operation, its leadership and continued support throughout the implementation of the Framework: Danucha Pichayanan, Secretary General of the NESDC, Sasithorn Palattadej, Deputy Secretary-General of the NESDC, Athipong Hirunraengchok, Director of the Competitiveness Development Strategy and Coordination Division, Punnaluk Suraswadi, Director of Logistics Development Strategy Division, as well as NESDC staff Niti Changpinyo, Sutamma Dharmasakti, Kampree Sethaputra, Ongart Rukkhawattanakul (Competitiveness Development Strategy and Coordination Division), Jutharath Yoktaworn (Logistics Development Strategy Division).
At various stages of advancements, interim outcomes of the report have been presented and discussed, including during:
the first project meeting, to kick-off the implementation of the Framework in Thailand (15 February 2024, Bangkok)
a workshop to inform the selection of the low-carbon options (4 April 2024, on-line workshop)
the second project meeting, to present the outcomes of the economic assessments (7 November 2024, Bangkok)
the third project meeting, to present the preliminary conclusions and recommendations (15 May 2025, Bangkok)
The project meetings convened a stakeholder group representing over 60 organisations from government, industry associations, national and multinational companies, financial institutions, international partners and multilateral development agencies, research and academia. These included representatives from: the NESDC, the Office of Industrial Economics (OIE, Ministry of Industry), the Department of Climate Change and Environment (DCCE, Ministry of Environment and Natural Resources), the Pollution Control Department (PCD, Ministry of Environment and Natural Resources ), the Department of Alternative Energy Development and Efficiency (DEDE, Ministry of Energy), the Department of Mineral Fuels (DMF, Ministry of Energy), the Energy Planning and Policy Office (EPPO, Ministry of Energy), the Excise Department (Ministry of Finance), the Fiscal Policy Office (FPO, Ministry of Finance), the National Nanotechnology Center (NANOTEC, the National Science and Technology Development Agency (NSTDA)), the National Metal and Materials Technology Center (MTEC, NSTDA), the Department of Industrial Works (DIW, Ministry of Industry), the Ministry of Agriculture and Cooperatives, the Office of SMEs Promotion (OSMEP), the Eastern Economic Corridor Office (EECO), the Securities and Exchange Commission (SEC), Thailand Greenhouse Gas Management Organisation (TGO), Thailand Board of Investment (BOI), the German Embassy in Bangkok, Braskem, Braskem Siam, the Federation of Thai Industries Petrochemical Industry Club (FTIPC), Indorama Ventures PCL, PTT, PTT Exploration and Production, PTT Global Chemicals, PTT MCC Biochem, SCG Chemical Public Company Limited, Tetra Pak (Thailand), Thai Bioplastic Industry Association (TBIA), Thai Wah Public Company, Thailand Institute of Packaging and Recycling Management for Sustainable Environment (TIPMSE), Total Energies Corbion, Asian Development Bank, Bank of Ayudhya, Bangkok Bank, ICBC Leasing Company, Kasikorn Bank, Krungthai, Standard Chartered Thai, Thai Bankers Association (TBA), United Overseas Bank (Thai) PCL, the German Agency for International Cooperation (GIZ), International Finance Corporation (IFC), UN ESCAP, UNIDO, World Bank, Agora Energiewende, Asia Clean Energy Partners, Energy Research Institute, Global Green Growth Institute (GGGI), King Mongkut's University of Technology Thonburi (KMUTT), Petroleum and Energy Institute of Thailand (PEIT).
In addition, the report benefited from the review and written feedback from the NESDC and experts from the DCCE, DEDE, OIE, PCD, SEC, TBA, Braskem, FTIPC, TBIA, as well as from the Ministry of Environment from Japan. The author is thankful for the feedback and contributions received from the following OECD colleagues: Joana Argemí Ribalta (former OECD, contributions to chapter 1 and annexes B and C), Ruben Bibas, Peter Borkey, Elena Buzzi, Joseph Cordonnier, Frithjof Laubinger (Box 6.1), Katarina Svatikova, Klas Wetterberg. The author would like to thank Tiyarat Niamkohphet-Cader for the co‑ordination under Phase 2 of the OECD Thailand Country Programme, as well as Douglas Herrick, Virginie Marchal and Krzysztof Michalak for the co‑ordination under the SIPA. Deniz Bastunali and Dominique Haleva are gratefully acknowledged for their administrative support and editorial assistance, as well as Alyssa Perrott and Beth Del Bourgo for communications support.
This report was made possible through the generous contribution of the Government of Germany.