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We have long been familiar with the idea that economic growth is primarily driven by economic activities — tourism, foreign investment, and domestic demand. Yet today, climate change has emerged as a critical driving force that defines both the opportunities and the constraints of economic growth in the new era.
According to the World Bank Report 2025, if Thailand fails to take decisive action to address climate change, achieving its goal of becoming a high-income country by 2027 will become increasingly difficult, despite its strong economic potential. The report further projects that the impacts of climate change — including intensified flooding, droughts, and heatwaves — could lead to a decline in Thailand’s Gross Domestic Product (GDP) by as much as 7 to 14 percent in the future.
The challenge of climate change directly affects national competitiveness. Although Thailand is not among the world’s major greenhouse gas emitters, data from the International Energy Agency (IEA) shows that the country contributes only about 0.7 percent of total global emissions — a relatively low share. However, when measured on a per capita basis, Thailand’s emissions are comparatively high within ASEAN, reaching 3.487 tons of CO₂ per person in 2022, exceeding that of countries such as Vietnam.
As the world moves toward a green economy, environmental considerations have become a critical determinant of competitiveness. For Thailand — a country heavily dependent on exports — this issue is especially vital. If other nations advance more effectively in reducing emissions and transitioning to sustainable production, Thailand risks losing its competitive edge in international trade.
The World Bank further emphasizes that Thailand’s future competitiveness will increasingly depend on its capacity to reduce industrial greenhouse gas emissions. This underscores a fundamental reality: environmental sustainability is no longer a “choice,” but a core condition for economic growth in the new global landscape.
Asia is among the regions with the highest greenhouse gas emissions in the world. According to The World Data (2023), Asia’s CO₂ emissions reached 7.63 billion tons. Within ASEAN, a study by Hon Chung Lau and Xianlong Lin indicates that the region contributes approximately 4.75 percent of total global emissions. The highest-emitting ASEAN members — Indonesia, Malaysia, Thailand, Vietnam, and the Philippines — are notably the same five countries with the largest export values in the region.
Despite ASEAN’s ongoing efforts to address climate change through various cooperative mechanisms, the region continues to face significant challenges. The ASEAN State of Climate Change Report highlights persistent issues such as fragmented and limited access to climate information, budget constraints, and disparities in institutional capacity among member states.
To strengthen its climate resilience, ASEAN will need to accelerate adaptation by learning from successful global examples while enhancing data integration and cross-border cooperation among its members. These measures are essential not only to mitigate environmental risks but also to safeguard the region’s economic competitiveness.
As the World Bank notes in Thailand’s case, climate change impacts extend beyond physical and environmental consequences — they increasingly shape the region’s long-term economic competitiveness. This reality is already evident: Jakarta’s recurrent flooding in Indonesia, the severe heatwaves that have disrupted agricultural yields across several ASEAN countries, and the rising vulnerability of export-dependent economies all serve as warning signs. Addressing climate change, therefore, is no longer solely an environmental imperative — it has become a strategic priority for ASEAN’s economic security and competitiveness in the decades ahead.
Author:
Mr. Woraphat Ditpan
Researcher
International Institute for Trade and Development (ITD)
www.itd.or.th
Publication: Bangkok BIZ Newspaper
Section: First Section/World Beat
Volume: 39 Issue: 13011
Date: Wednesday, Oct. 15, 2025
Page: 8 (bottom-left)
Column: “Asean Insight”
