The World Bank in Thailand Development 51610 in Partnership June 2009 the Wor ld Bank 's ac tivities in Thailand a nd other news related to development THAILAND TO FIGHT GLOBAL WARMING WITH TWO NEW CDM PROJECTS BANGKOK ­ Thailand's effort to reduce greenhouse gas emissions What is CDM? and promote renewable energy gets a big boost from the World Bank, which signed two carbon finance agreements with Thai companies CDM is a mechanism under the Kyoto in less than a month. Protocol, which allows industrialized countries with a greenhouse gas The agreements supported two Clean Development Mechanism reduction commitment to invest in (CDM) projects, which ­ once operational ­ will help the country projects that reduce emissions in reduce almost one million tons of carbon-dioxide-equivalent of developing countries. greenhouse gas emissions annually. For more information about CDM "These two projects together is another step forward for Thailand," in Thailand, visit www.tgo.or.th said Sirithan Pairoj-Boriboon, Executive Director of the Thailand ­ the official website of the Thailand Greenhouse Gas Management Organization (TGO). Greenhouse Gas Management Since 2007, the Thai government has approved a total of 75 CDM Organization. projects, helping Thailand to cut the emissions of almost five million tons of carbon dioxide equivalent per year. "Our goal is to reduce pollution and greenhouse gas emissions while promoting renewable energy as a means to sustainable development. I hope to see many more projects like these in the future," he said. Improvements of Wastewater Treatment Systems Help Reduce Greenhouse Gas Emissions The first agreement, signed on May 28, was between the World Bank and TSM Bio Energy Co. Ltd., a subsidiary of Thai Sugar Ethanol Co. Ltd., which produces ethanol from molasses as an alternative to fossil fuels. In general, ethanol production tends to generate a lot of wastewater. If not properly treated, wastewater can generate methane gas as well as foul odors. The company plans to replace the currently open wastewater lagoons with a new covered anaerobic digestion system. Methane gas will be captured and used for electricity Acting Country World Bank Director, Patchamuthu generation, some of which will be sold to the Provincial Illangovan (right) looked on as Supoj Srisathaporn, Electricity Authority. Director of Sapthip Co. Ltd., signed the ERPA agreement. The signing was witnessed by Minister of Natural Resources and This operation will enable the company to reduce per year Environment, H.E. Suwit Khunkitti (center) 150,000 tons of carbon-dioxide-equivalent of greenhouse gas emissions ­ known as "carbon credit." The World Bank will purchase the carbon credit on behalf of the Spanish government, utilizing the Spanish Carbon Fund. Continue on page 2 Page Continued from page A covered anaerobic digestion system capturing methane gas, which is then used for electricity generation The second agreement was between the World Bank and Sapthip Co. Ltd., which produces ethanol fuel from cassava Why methane is good or bad for chips. Under the agreement, the Bank will purchase certified the earth? greenhouse gas emission reductions equivalent to 375,000 Methane is 21 times more potent tons of carbon-dioxide. greenhouse gas than carbon dioxide, Sapthip is a subsidiary of Sapsathaporn Co. Ltd., a making it a significant contributor to manufacturer and wholesaler of cassava and tapioca the warming of earth's temperature. products. The company was set up recently to take advantage However, methane can also provide of Thailand's position as one of the largest cassava producing clean source of energy, making it an countries in the World to support Thailand's growing interest attractive alternative to fossil fuels. in biofuels. The plant would normally emit greenhouse gases by using Carbon Finance Makes Green Investment coal for its energy supply and by managing wastewater in Affordable to Developing Nations a way that allows of the emission of the greenhouse gas Such agreements also demonstrated the World methane to the atmosphere. Similar to the TSM project, the Bank's commitment to help developing countries reductions at Sapthip's ethanol refinery, located in Lopburi acquire the resources to invest in climate-friendly province, will result from improvements of the wastewater technology and programs in order to reduce treatment system. greenhouse gas emissions. With the Emission "We are pleased to play our part in the fight against global Reduction Purchase Agreement (ERPA) to warming by capturing methane from our new wastewater guarantee additional income from trading the treatment facility and converting it to clean renewable carbon credit, investment in clean technology energy and getting carbon credits for our efforts," said Supoj becomes much more attractive to business Srisathaporn, Director, Sapthip Co. Ltd., after the agreement operators, who may be interested in protecting signing on June 5, which was witnessed by the Minister of the environment but do not have access to the Natural Resources and Environment, Suwit Khunkitti. capital to support needed new investment. Page 2 "With support from the Spanish Carbon Fund, we will "I hope that we clearly demonstrated our commitment by be able to invest in a proper technology to reduce the signing two ERPAs in Thailand in less than two weeks," she emissions of methane gas at our plant," said Jetsada said. Wongwatanasin, Managing Director of Thai Sugar Ethanol and TSM Bio Energy. "This project will enable us to improve the local environment and Fore more information about this project, contact: address the global issue of climate change at the Pongtip Puvacharoen same time. It's a win-win solution for us." Tel. (0) 2686-8362, email ppuvacharoen@worldbank.org The Bank firmly believed that developing countries Pichaya Fitts are more vulnerable to the negative impacts of Tel. (0) 2686-8324, email pfitts@worldbank.org climate change than rich countries, and the impact of climate change could wipe out some To learn more about the World Bank in Thailand, visit of the gains they had made in terms of poverty www.worldbank.or.th reduction, said Annette Dixon, the Thailand Country Director of the World Bank. At the same time, she noted that the world is beginning to step up to the challenge of climate change, and emphasized the Bank's full commitment to supporting this effort. WORLD BANK'S RESPONSE TO THE GLOBAL CRISIS The collapse of the financial sector in the United States has quickly snowballed into a global crisis, leading the world into the worst economic recession since the Great Depression. At greatest risk are the world's poorest population, who live on less than $1.25 a day. The crisis, combined with last year's food price increases, will have serious consequences for women in poor countries and for their children. We can expect higher infant mortality, more girls being pulled out of school, and reduced women's income. Before the financial crisis emerged, the Bank estimated that 130-155 million people in developing countries had already been pushed The global crisis will have serious consequences for women and children into poverty as a result of soaring food and fuel in poor countries, the World bank said prices. Now the global slowdown will push up to 53 million more people in developing countries down to an income of less than $1.2 5 a day. economic growth); and supporting small and medium-size enterprises as well as microfinance. To deliver our assistance, The World Bank Group has been helping countries we work closely with other development partners, donor to respond to the crisis in a number of ways. We countries, and our investment arm, the International Finance moved swiftly to speed up lending, assistance Corporation (IFC). and advice to countries affected by the global slowdown. Our assistance is focused on safety Many new initiatives and programs have been introduced net programs to protect the most vulnerable over the past year, but more still needs to be done. This people; maintaining investments in infrastructure is an unprecedented global challenge and it requires an (which will help create jobs and stimulate unprecedented global effort. Continued on page 4 Page Continud from page Some of World Bank initiatives in response to the crisis: · A Global Food Crisis Response Program (GFRP), launched in May 2008, to provide immediate relief to countries hard hit by high food prices. GFRP was increased to $2 billion in April 2009 from the initial $1.2 billion. In FY08/09 each of the GFRP loans was processed on average in under two months. · The Rapid Social Response Program (RSR) which focuses on social interventions by providing access to basic social services, safety net programs and labor market policies to assist in income support for the unemployed. · INFRA (Infrastructure Recovery and Assets Platform) will provide $45 billion for infrastructure over the next three years, as announced in April 2009. For more information on the World Bank's response to the global crisis, please visit http://www.worldbank.org/html/extdr/financialcrisis/ Page 4