Thai­land's first cli­ma­te fi­nan­ce pro­ject achie­ves re­mar­ka­ble re­sults

Under the headline “Green Cooling Revolution: RAC NAMA Fund and the Future of Thai Industry,” presided over by H. E. Mr. Varawut Silpa-archa, Minister of Natural Resources and Environment, many different stakeholders came together. Attending the event were Mr. Thepparat Theppitak, Deputy Governor – Power Plant Development and Renewable Energy, EGAT, Mr. Patana Sangsriroujana, Deputy Governor – Strategy, EGAT, H. E. Mr. Georg Schmidt, German Ambassador to Thailand, and Ms. Margaret Tongue, Chargé d’Affaires, the British Embassy Bangkok, and several RAC manufacturers. The event was held at the Anantara Siam Bangkok Hotel.

H. E. Mr. Varawut Silpa-archa, Minister of Natural Resources and Environment of Thailand, underscored the importance of the phase-down of climate-warming substances in his keynote address titled “Greenhouse Gas Emission Reduction in the Refrigeration and Air Conditioning Industry.” He highlighted the significant contribution of the phasing down to Thailand’s Nationally Determined Contributions (NDCs), which aim to reduce emissions by 20 to 25 per cent by 2030. The Thai Government is grateful for the active cooperation from all parties, both at the national and international levels, which has led to the success of the RAC NAMA Fund.

“The Government of Thailand is therefore placing great emphasis on the promotion of energy-efficient and climate-friendly cooling technologies due to their ultra-low Global Warming Potential (GWP) while strongly promoting new business opportunities, R&D, and knowledge transfer. I would especially like to thank the German and British Governments for their continuous support in the financing of the RAC NAMA Fund, transferring know-how, and fostering international cooperation,” Mr. Varawut added.

In his statement, Mr. Thepparat Theppitak, Deputy Governor – Power Plant Development and Renewable Energy, EGAT, announced: “In December 2017, EGAT assumed responsibility for managing the Fund, with a total budget of 8.3 million Euro (approximately 300 million Baht), to promote the production and use of energy-efficient and climate-friendly cooling technologies on behalf of the Thai Government. Over the past two years, a number of financial instruments have been holistically defined for the whole demand and supply chain, as well as the service sector. These measures include: 1) 10-million-baht in consumer finance to promote the purchase of Green Cooling products on the market, a scheme that has boosted the purchase of over 15,000 domestic fridges and led to energy saving of 1.1 giga watts per year; 2) a 52-million-baht credit line with zero interest rate for a duration of one year for the production line conversion to natural refrigerants for Thai manufacturers; 3) a sub-grant for production line conversion to natural refrigerants for Thai manufacturers, which resulted in 90 million Baht private contribution; 4) a 15-million-baht sub-grant for training equipment for setting up 8 training centres across Thailand and 5) a 155-million-baht credit line with zero interest rate for market introduction of Green Cooling products.”

The Thai Government plans to export more Green Cooling products to the European and Japanese markets. Mr. Thepparat expects that, by the end of 2030, the initiative will have saved up to 3,500 million units of energy per year.

In his statement, H. E. Mr. Georg Schmidt, German Ambassador to Thailand said: “Germany is a global industrial leader in engineering and technology. To tackle the impacts of climate change, Germany is committed to working with countries around the world and to coming up with innovations such as technologies that are climate-friendly. For more than ten years, Thailand and Germany have worked together on various climate and environment issues, notably in the cooling industry where Thailand is an important manufacturing and export hub of RAC equipment. Today, Germany is proud to have played a part in the transition towards the adoption of Green Cooling technologies. The experience and knowledge gained from the implementation of the RAC NAMA Fund should be extended to other countries.”

In her remarks, Ms. Margaret Tongue, Chargé d’Affaires, the British Embassy Bangkok concluded: “The RAC NAMA Fund is the pioneer climate finance fund in Thailand. It is funded by the NAMA Facility, a partnership of the Federal Republic of Germany and the UK, to implement the project to develop the Thai refrigeration and air conditioning sector and move towards a low carbon society through the use of climate-friendly and energy-efficient cooling technologies. We believe the improved technology is central to Thailand’s mitigation efforts. The achievements of the RAC NAMA Fund clearly demonstrate a strong commitment of the Thai Government in reaching the national climate targets.”