Thailand is intensifying its efforts to combat global warming by steering investment towards green manufacturing.
At the centre of this strategy is the bio-, circular and green (BCG) economic model -- a framework that aims to balance growth with sustainability.
Though it no longer commands the same spotlight it did when first introduced several years ago, BCG remains crucial to Thailand's ambition of achieving a net-zero target by 2050, 15 years earlier than its original target.
The Explainer examines how BCG is evolving under the current government, its role in Thailand's economic revival and whether businesses are truly embracing the model.
Did BCG lose steam as a key government policy?
While the BCG model was not initiated by the Anutin Charnvirakul government, it continues to play a vital role in Thailand's climate strategy.
Declared a national agenda item in 2021 under former prime minister Prayut Chan-o-cha, BCG promotes manufacturing that adds value to products while minimising environmental impact.
Industry Minister Varawut Silpa-archa said one of his priorities is to transition Thai industry towards high-technology, environmentally-friendly production.
He said he wants to meet foreign investors to discuss expansion projects and clarify policies supporting the industrial sector, including the promotion of electric vehicles (EVs) and the development of renewable energy.
Mr Varawut emphasised that stricter environmental standards will be enforced to raise Thailand's competitiveness in global markets.
"The world is moving towards stricter environmental standards," said Narit Therdsteerasukdi, secretary-general of the Board of Investment (BoI), stressing that Thailand must adapt or risks being left behind.
He said Thailand formed a path for its transition to a green economy by prioritising environmentally-friendly, low-carbon products in its national export strategy to meet global demand.
According to the World Bank's Thailand Economic Monitor of February 2026, advanced green manufacturing is a critical pathway to stimulate the economy and overcome structural bottlenecks.
Kiatipong Ariyapruchya, senior country economist for the World Bank in Thailand, said projects that scale up green manufacturing could lift GDP by 2.9% by 2035 and create 203,000 high-quality jobs.
"The green economy is an opportunity for Thailand, supporting sustainable growth, attracting investment and helping manufacturing become the new engine of development," he said.
Beyond GDP growth, the BCG model is seen as a shield against environmental degradation. By reducing resource consumption and minimising carbon footprints, Thailand hopes to position itself as a leader in Southeast Asia's green transition.
Last year, Mr Anutin announced Thailand would accelerate its net-zero target to 2050, underscoring the urgency of climate action.
The BoI has emphasised that governments and international organisations are crucial in this journey, providing regulatory frameworks, climate goals and financial incentives to spur green investment.
The focal areas are clear: EVs, renewable energy and circular economy businesses that upcycle waste into value-added products.
How does the BoI promote BCG?
The BoI has been instrumental in driving BCG forward, offering strong tax incentives to companies in EV manufacturing, battery energy storage and agriculture.
Between 2023 and 2025, the board approved 2,585 BCG-related project proposals.
Applications for incentives surged from 791 projects worth 187 billion baht in 2023 to 907 projects valued at 226 billion in 2024.
In 2025, applications totalled 887 projects with investments of 224 billion baht.
"The green manufacturing sector is emerging as a key growth driver for Thailand's economy," Mr Narit said.
Much of this investment comes from abroad, with Japan, China, the US and European countries leading the charge, he said.
The BoI's policy aligns with global trends in sustainability, positioning Thailand as a key investment destination.
By offering incentives and promoting BCG-related industries, the board is helping ensure Thailand remains competitive in the global market, said Mr Narit.
Thailand's gamble on BCG is ambitious but necessary, he noted, as climate change is no longer a distant threat -- it is a present reality reshaping economies worldwide.
By embracing green manufacturing, Thailand is not only protecting its environment but also carving out a competitive edge in the global market, according to the BoI.
Are businesses interested in adopting BCG?
Businesses across many industries are increasingly embracing green practices to protect the environment and align with global standards.
Chinese firms pledged investment of 172 billion baht in EVs, batteries and electronics in 2025, according to the BoI.
These projects, particularly in battery-powered cars, directly support BCG's goal of reducing transport sector emissions.
Japanese manufacturers are focusing on renewable energy and integrating carbon-reduction expertise into Thai factories.
European investors are targeting bio-based industries and high-value chemicals, aligning Thai production with the EU's strict environmental standards.
Meanwhile, US tech companies are investing in Thailand's digital and green economy.
Amazon Web Services (AWS), the global cloud service arm of Amazon, is designing data centres to be less carbon-intensive, with innovations in power, cooling and hardware efficiency.
AWS aims to achieve net-zero carbon emissions across its operations by 2040, in line with the "Climate Pledge" co-founded by Amazon.
Annabel Lee, head of policy for Asean at AWS, said the company is designing its data centres to be less carbon-intensive from the ground up. The company's next-generation facilities will be more efficient, helping it meet sustainability goals, she said.
