OECD Framework for industry’s net-zero transition in Thailand's petrochemical sector and plastics value chain kick-off meeting, 15 February 2024, Bangkok, Thailand

1. FRAMEWORK FOR
INDUSTRY’S NET-ZERO
TRANSITION
Implementation to Thailand’s Petrochemicals & Plastic Value Chain
Launch Event
1
15 February 2024
Cécile Seguineaud,
Industry Policy Analyst
Joana Argemí Ribalta,
Industry Research Officer
Deger Saygin,
Industry Team Lead

2. 2
Agenda
• Opening remarks 09:30 – 09:45
• Photo Session 09:45 – 09:50
• Scene Setting 09:50 – 10:20
• Tea/Coffee Break 10:20 – 10:35
• Stakeholder session 10:35 – 11:55
• Wrap-up & Next Steps 11:55 – 12:00

3. 3
Opening Remarks
• H.E Dr Ernst Reichel, Ambassador of Germany to Thailand
• Mr Danucha Pichayanan, Secretary General, Office of the National
Economic and Social Development Council (NESDC)
• Ms Mathilde Mesnard, Deputy Director, OECD Environment Directorate

4. 4
Agenda
• Opening Remarks 09:30 – 09:45
• Photo Session 09:45 – 09:50
• Scene Setting 09:50 – 10:20
• Tea/Coffee Break 10:20 – 10:35
• Stakeholder Session 10:35 – 11:55
• Wrap-up & Next Steps 11:55 – 12:00

5. 5
Agenda
• Opening Remarks 09:30 – 09:45
• Photo Session 09:45 – 09:50
• Scene Setting 09:50 – 10:20
Opening Remarks
Project Overview
Decarbonising Thailand’s petrochemical industry & plastic value chain: Framing the Stakes
Q&A with audience
• Tea/Coffee Break 10:20 – 10:35
• Stakeholder Session 10:35 – 11:55
• Wrap-up & Next Steps 11:55 – 12:00

6. 6
Scene Setting – Opening Remarks
• Mrs Siripen Kiatfuengfoo,
Deputy Director General of the Office of Industrial Economics (OIE), Ministry
of Industry

7. 7
Agenda
• Opening Remarks 09:30 – 09:45
• Photo Session 09:45 – 09:50
• Scene Setting 09:50 – 10:20
Opening Remarks
Project Overview
Decarbonising Thailand’s petrochemical industry & plastic value chain: Framing the Stakes
Q&A with audience
• Tea/Coffee Break 10:20 – 10:35
• Stakeholder Session 10:35 – 11:55
• Wrap-up & Next Steps 11:55 – 12:00

8. 8
Overview of OECD CEFIM Programme
CEFIM country partners: Colombia, Egypt,
India, Indonesia, Philippines, South Africa,
Thailand and Viet Nam
OECD programme funded by Australia, Canada,
Denmark, Egypt and Germany
Aim: to help accelerate clean energy finance and
investment by strengthening domestic enabling
conditions
Scope: renewable electricity, energy efficiency in
buildings and industry decarbonisation
Activities:

9. Scene Setting – Project Overview
Technology
transfer & R&D
Carbon
Markets
Asset
stranding
High costs of
transition &
competitiveness
A flexible approach is
needed to develop
tailored solutions that
encompass many
considerations for
emerging and developing
economies
• Improving enabling market
conditions (policies,
regulations, etc.)
• Financing instruments
• Strategic alignment with
national plans and policies
• Focusing on one industry
sub-sector
Why the Framework?

10. Decarbonising Thailand’s industry can build on a wide range of national plans and strategies
10
Scene Setting – Project Overview
• NDC action plan energy
• Alternative Energy Development Plan 2015-
2036,
• National Energy Plan 2022 (NEP 2022),
• Power Development Plan 2018-2037,
• Energy Efficiency Plan 2018-2037 (EEP)
• LT Low GHG Emission Development Strategy,
Climate Change Master Plan (2015-2050)
• NDC Roadmap (2021-2030)
• Thailand Industrial development strategy 4.0
(2017 – 2036)
• National Industrial Development Master Plan
(2012-2031)
• National Action Plan for the GHG Mitigation
from the IPPU Sector and Industrial
Wastewater Measure (2021-2030)
• The 20-Year National Strategy 2018 – 2037
• BCG
Industry
Energy
Climate /
Mitigation
Economy /
Development

11. Scene Setting – Project Overview
Finance institutions
Industry
Policy makers
OECD
coordination
of the
Framework
Stakeholder groups
The Framework is a
step-by-step approach
Contributing to the broader policy dialogue on industry transition and climate finance
Framework
implementation
benefits for
countries
Pipeline of projects for industry’s net-zero transition and financing solutions to deploy them
Solutions for improving the enabling market conditions
Framework
Content

12. 12
Scene Setting – Project Overview
A Governance building on Thailand’s established National Industrial Development Board (NIDB)
PM
 Overall guidance for critical steps
 Share & review the outcomes
 Convene the Stakeholder Group
Bilateral meetings
 Targeted & tailored discussions
 Outcomes feed the PMs

13. 13
Scene Setting – Project Overview
A diverse 30 Members Stakeholder Group reflecting a cross-cutting approach
Government
NESDC, Ministry of Industry,
MONRE, MOE, MOF, MOAC,
NSTDA, SEC, BOT, BOI
Industry
FTI PC, FTI plastics,
Thai Bioplastic Association,
Thai Chamber of
Commerce…
Finance
Thai Bankers Association,
ADB, World Bank, IFC…
Think Tanks, Academia
KMUTT, Asean Center for
Energy, Agora Energiewende,
…
International Partners
UNIDO, UN ESCAP, UNCTAD,
UNOPS, GiZ, GGGI…

14. An opportunity to leverage synergies between projects on Thailand’s decarbonisation of
petrochemicals & plastic value chain from Stakeholder Group Members
14
Scene Setting – Project Overview
Eastern Economic Corridor of
Innovation (EECi)
CAPCI project (Climate Action
Programme for the Chemical Industry)
by the Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ)
Petrochemicals Plastics Recycling
Asian Development Bank (ADB)
World Bank / IFC
OECD regional plastics outlook (ASEAN)
Examples of stakeholders’ projects focusing on Thailand’s petrochemicals decarbonisation & plastics recycling

15. 15
Scene Setting – Project Overview
Key Milestones & Deliverables
Step 1
Stakeholder Engagement
and Focus Area
Step 1
Stakeholder Engagement
and Focus Area
Step 2
Background Research
Step 2
Background Research
Step 3
Business Cases and
Pipeline of Projects
Step 3
Business Cases and
Pipeline of Projects
Step 4
Identifying Enabling
Conditions & Financing
Solutions
Step 4
Identifying Enabling
Conditions & Financing
Solutions
Step 5
Disseminate the
Framework outcomes
Step 5
Disseminate the
Framework outcomes
 Stakeholder engagement
Q2 2022 - Q3 2023
 Document stating the choice of
the focus area– Q4 2023
 Terms of Reference – Q4 2023
 Project meeting n°1: Kick-off
meeting – Q1 2024
 Project meeting n°2:
Assessment of the
business cases
– Q3 2024
 Project meeting n°3:
Market and financing
solutions – Q1 2025
 Country Report
– Q2 2025
 Approval meeting with
the NIDB – Q3 2025
 Series of events,
website
communication
– 2025

16. Any question on the Project Overview ?
16
Scene Setting – Project Overview

17. 17
Agenda
• Opening Remarks 09:30 – 09:45
• Photo Session 09:45 – 09:50
• Scene Setting 09:50 – 10:20
Opening Remarks
Project Overview
Decarbonising Thailand’s petrochemical industry & plastic value chain: Framing the Stakes
Q&A with audience
• Tea/Coffee Break 10:20 – 10:35
• Stakeholder Session 10:35 – 11:55
• Wrap-up & Next Steps 11:55 – 12:00

18. Decarbonising industry is key to reach Thailand’s emission reduction targets
18
Scene Setting – Framing the Stakes
Thailand has set ambitious emission reduction targets
• Carbon neutrality by 2050
x
• Net zero GHG emissions by 2065
• x
• Reduce GHG emissions by between 30% and 40%
compared to the projected business-as-usual level by
2030
Source: Thailand’s Long-Term low GHG development strategy (2022)
Thailand’s manufacturing industry is a key growth engine,
but highly GHG emitting
• Accounting for more than 25% of Thailand’s total GDP
,
22% of total employment
x
• More than 1/3 of Thailand’s total GHG emissions (2019)

19. Thailand’s petrochemical industry ranks first in the Southeast Asian region
19
Scene Setting – Framing the Stakes
Source: Thailand Industry Outlook, 2023-2025, Krungsri Research
• 35 Mt production capacity (2021)
• Ranked 1st in Southeast Asian, 16th in the world
• Naphtha / Ethane as main feedstocks
• 5.4 Mt ethylene production capacity (2021),
ranking 9th in the world
• 80% of Thai upstream and intermediate
production is for domestic use

20. Source: SEA Circular, 2018
Accounting for 7.7% of Thailand’s GDP
, the plastic sector has grown steadily for the last decade
20
Scene Setting – Framing the Stakes
• Plastic resins production 7.3 Mt in 2019
• 3.8 Mt HDPE + LDPE production 2.5 Mt for PP
,
2.1 Mt for PET (2021)
• Bioplastic production 2% of total plastics
production
• 55% of Thai downstream products is for exports,
mostly for Asia region
• Export value +50% over the past 10 years,
x 6 over the past 20 years (UNCTAD).

21. Plastic products’ end-of life management & plastic waste remain at stake for Thailand
21
Scene Setting – Framing the Stakes
Source: World Bank, 2021
• 2.88 million tonnes/year of plastics are
not recycled (source World Bank)
• Overall recycling rate 22%, but highly
varies across plastic resins
• Thailand’s Roadmap on Plastic Waste
Management (2018-2030) aims to
target
100% reutilisation of plastics/recycling
of plastic waste by 2027,
a shift to alternative eco-friendly
materials, reduction or halt in usage
of various plastic products.

22. A complex value chain comprised of a variety of products & production routes
22
Scene Setting – Framing the Stakes
Petroleum
products
Upstream
Petrochemicals
Downstream
Petrochemicals
Intermediate
Petrochemicals
Final Products
Chemicals
Feedstocks
Source: Thailand Industry Outlook, 2023-
2025, Krungsri Research
Main upstream
petrochemicals products
in Thailand
The upstream petrochemical industry
accounted for 62% of GHG emissions
of Thailand’s petrochemical industry
Main energy & emission
intensive petrochemicals
products in Thailand

23. A broad range of options to decarbonise upstream petrochemicals and the plastic value chain
23
Scene Setting: Framing the Stakes
Petroleum
products
Upstream
Petrochemicals
(Cracker)
Downstream
Petrochemicals
Intermediate
Petrochemicals
Final Products
Chemicals
Feedstocks
1) Biomass
Feedstock
2) Production process
Focus on Cracking: Energy efficiency
Low-carbon heat & electricity, CCUS …
3) Recycling /
End-of
products’ life
management
• Mechanical
Recycling
• Chemical
Recycling
• Waste to
Energy
Bio-ethanol
Bio-naphtha
Bio-
methanol
Bio-based and
compostable plastics
(PLA, PBS, TRS)
Bio-ethylene
Methanol to Olefins
Dehydration
Examples of decarbonisation routes

24. 24
Scene Setting – Project Overview
The selection of decarbonisation options depends on a combination of factors
Emission reduction
potential
Incremental vs deep
decarbonization potential
Technology and
commercial maturity
Technological readiness levels,
existing industrial projects
Economic
Competitiveness towards
conventional routes
Relevance to Thailand’s specificities
availability of feedstocks,
relevance with national energy,
climate and industry strategies

25. Beyond emission reductions, decarbonising petrochemicals & the plastic value chain
can bring further benefits to Thailand
25
Scene Setting – Framing the Stakes
Enhancing circularity and waste management
A leading country for bio-based products
Fostering industrial symbiosis
Strengthening SMEs
(plastic recycling & converters)
Competitiveness of exports of emission
intensive products

26. 26
Agenda
• Opening Remarks 09:30 – 09:45
• Photo Session 09:45 – 09:50
• Scene Setting 09:50 – 10:20
Opening Remarks
Project Overview
Decarbonising Thailand’s petrochemical industry & plastic value chain
Q&A with audience
• Tea/Coffee Break 10:20 – 10:35
• Stakeholder Session 10:35 – 11:55
• Wrap-up & Next Steps 11:55 – 12:00

27. 27
Agenda
• Opening Remarks 09:30 – 09:45
• Photo Session 09:45 – 09:50
• Scene Setting 09:50 – 10:20
• Tea/Coffee Break 10:20 – 10:35
• Stakeholder Session 10:35 – 11:55
• Wrap-up & Next Steps 11:55 – 12:00

28. 28
Agenda
• Opening Remarks 09:30 – 09:45
• Photo Session 09:45 – 09:50
• Scene Setting 09:50 – 10:20
• Tea/Coffee Break 10:20 – 10:35
• Stakeholder Session 10:35 – 11:55
Introductory Remarks
Project Overview
Wrap-up & Next Steps 11:55 – 12:00

29. 29
Stakeholder Session – Introductory Remarks
Priorities, challenges and opportunities for decarbonising Thailand’s
petrochemical industry and the plastic value chain
• Mr. Charoenchai Prathuangsuksri,
Chairman of the Federation of Thai Industries Petrochemical Industry Club (FTI PC),
• Mrs Rachanee Chanawatr, Principal Investment Officer – Asia Pacific,
Manufacturing, Agribusiness, and Services, International Finance Corporation (IFC)
• Dr Piya Kerdlap,
Managing Director PXP Sustainability, Consultant for Asian Development Bank (ADB)

30. 30
Agenda
• Opening Remarks 09:30 – 09:45
• Photo Session 09:45 – 09:50
• Scene Setting 09:50 – 10:20
• Tea/Coffee Break 10:20 – 10:35
• Stakeholder Session 10:35 – 11:55
Introductory Remarks
Discussion
Wrap-up & Next Steps 11:55 – 12:00

31. 31
Stakeholder Session – Questions for Discussion
• What are the stakes & priorities for the petrochemical and plastic sectors in
Thailand?
• What are the strategies, technology routes, industry projects for
decarbonising the petrochemical sector…
… and for increasing plastic circularity & end-of life plastic management?
• What are the main opportunities & challenges for bio-based plastics ?
• What are the barriers & challenges related to policies, financing, technology
for decarbonising petrochemicals & the plastic value chain?
• What type of financing instruments, enabling investment conditions are
available and needed?

32. 32
Agenda
• Opening Remarks 09:30 – 09:45
• Photo Session 09:45 – 09:50
• Scene Setting 09:50 – 10:20
• Tea/Coffee Break 10:20 – 10:35
• Stakeholder Session 10:35 – 11:55
• Wrap-up & Next Steps 11:55 – 12:00

33. 33
Wrap-up & Next Steps
• Towards Step 3 of the Framework implementation
Project meeting n°2 –
Validation of the
business cases
Virtual workshop to
select the
decarbonisation routes
for the business cases
STEP 2
15 February 2024
STEP 3
Q3 2024
March/April 2023
Project meeting n°1 -
Kick-off meeting

34. 34
THANK YOU FOR YOUR ATTENTION
Please visit our webpage: www.oecd.org/cefim/
For more information, please contact:
Deger Saygin, Industry Team Lead,
deger.saygin@oecd.org
Cécile Seguineaud, Industry Policy Analyst,
cecile.seguineaud@oecd.org
Joana Argemí Ribalta, Industry Research Officer,
joana.argemiribalta@oecd.org

35. Annexes
35

36. Ethylene forms the bulk of upstream capacity, while packaging is the first consumer of
downstream petrochemicals
36
Scene Setting – Framing the Stakes
• 5.4 Mt ethylene production capacity (2021),
ranking 9th in the world
• 80% of Thai upstream and intermediate
production is for domestic use
• 3.8 Mt HDPE + LDPE production 2.5 Mt for PP
,
2.1 Mt for PET (2021)
• 55% of Thai downstream products is for exports,
mostly for Asia region
Source: Thailand Industry Outlook, 2023-
2025, Krungsri Research
Source: PTIT Focus: Special Annual Issue 2021, Petroleum Institute of Thailand

37. Across the value chain, upstream petrochemicals are the most energy consuming &
carbon intensive building bloc, driven by olefins
37
Scene Setting: Framing the Stakes
Source: Kanchnapiya & al. (2015)
• The upstream petrochemical industry accounted for 62% of GHG emissions of Thailand’s petrochemical
industry, whereas the intermediate and downstream groups were responsible for 21% and 17%
(period 2005-2010)