Background and Development Challenges 

Launched in Thailand in June 2014, the Biodiversity Finance Initiative (BIOFIN) received endorsement from the Office of the Prime Minister through the National Economic and Social Development Council. By 2017, Thailand completed the 'methodology' stage, which included insights from the Policy and Institutional Review (PIR), Biodiversity Expenditure Review (BER), and Financial Needs Assessments (FNA) for key ecosystems. The FNA identified a financing gap of approximately US$1,116 million needed to implement the National Biodiversity Strategy and Action Plan for 2018-2022. Addressing this finance gap will require collaborative efforts from the government and private sector, utilizing innovative financing solutions. Based on BIOFIN's findings, a comprehensive Biodiversity Finance Plan (BFP) was developed, featuring validated finance solutions approved by the National Steering Committee and relevant stakeholders. UNDP-BIOFIN in Thailand is committed to supporting the Royal Thai Government in co-creating the Biodiversity Finance Plan (BFP) for Thailand. This dynamic document builds on existing progress in biodiversity financing and establishes clear targets and indicators to advance the country's biodiversity finance agenda, aiming to achieve the 45 national biodiversity targets outlined in the National Biodiversity Strategic and Action Plan (NBSAP). The BFP was endorsed by Thailand’s National Steering Committee on Biodiversity Management under the Ministry of Natural Resources and Environment on September 23, 2024. It is recognized as a primary framework for achieving the Kunming-Montreal Global Biodiversity Framework (KMGBF), reflecting the Royal Thai Government's strong commitment to enhancing biodiversity conservation and sustainable finance. On October 29, 2024, the Cabinet of the Royal Thai Government approved the NBSAP (2023–2027), marking a significant milestone for Thailand as one of 44 countries eligible to submit the NBSAP at the 16th Conference of the Parties of the Convention on Biological Diversity (CBD COP16). The Biodiversity Finance Plan (BFP) serves as a comprehensive financing tool for the NBSAP, integrating diverse financial solutions to support the implementation of biodiversity initiatives. On December 12, 2024, the Secretary-General of the Office of Natural Resources and Environmental Policy (ONEP) approved the establishment of Thailand's first Biodiversity Finance Unit. Endorsed by the National Steering Committee of BIOFIN Thailand, this high-level institutionalization is a transformative step for the effective implementation of both the NBSAP and the BFP, ensuring efficient mobilization of financial resources for prioritized biodiversity conservation across the country. BIOFIN is aligned with the United Nations Sustainable Development Cooperation Framework (UNSDCF) 2022 – 2026 for Thailand under the Outcome One which states that ‘Thailand’s transformation into an inclusive economy based on a green, resilient, low-carbon, sustainable development is accelerated’.

The multiple challenges to achieve the SDG 14 – life below water and SDG 15 – life on land faced by Thailand because the economic development taking place over the past decades has often been achieved at the cost of its biodiversity loss. Forests, coastlines, and wetlands have become degraded and some 77 percent of the coral reefs in Thailand have been devastated by activities linked to tourism. This figure has risen from 30 percent a decade ago. Thus, BIOFIN calls for the whole-of-government and whole-of-society approach to restructure development framework through the implementation of the national Biodiversity Finance Plan. Thailand’s 20-year National Strategy (2018 – 2037) and the National Economic and Social Development Plan (2023-2027) also prioritises the Bio-Circular-Green Economy (BCG model) with an aim for achieving high-value eco-friendly economy. While the benefits derived from biodiversity and ecosystem services are considerable, they are systematically undervalued by policy makers, businesses, and financial institutions alike. At the same time, the conservation, sustainable use, and restoration of biodiversity can introduce substantial benefits for businesses, ensuring long-term viability of current business models; enabling cost savings and increases in operational efficiency; introduction of new business models, markets, products, and services; and improved relationships with stakeholders (OECD, 2019). It is time for all Thais, including the finance and banking sector , to contribute to conserving Thailand’s enormous biodiversity. This also means acknowledging how improved biodiversity management will be crucial to fulfilling the country’s sustainable development objectives. The conservation, sustainable use and restoration of biodiversity is vital to achieving many other policy objectives, including for human health, climate change mitigation and adaptation, disaster risk-reduction as well as water and food security. In the 15th Conference of the Parties of the UN Convention on Biological Diversity (COP 15 CBD), the new Kunming-Montreal Global Biodiversity Framework was adopted with strong commitment of the Royal Thai Government to achieve the 4 goals and 23 targets. With the specific target 19 articulates the core of UNDP’s work in Biodiversity Finance Initiative, Thailand shall receive technical support from BIOFIN to implement its National Biodiversity Strategic and Action Plan and the updated National Biodiversity Finance Plan.

The Biodiversity Finance Plan provides guidance on prioritized finance solutions which aims to address the inadequate investment in the coastal/marine, wildlife conservation and other critical natural assets of Thailand. Using a participatory approach to give voice to key stakeholders in the biodiversity sector, this plan defines the key activities to be undertaken, the timeframe for undertaking measures to achieve the financial objectives and the role of various stakeholders in the implementation of these solutions. Full implementation of the prioritized finance solutions will reduce Thailand’s large biodiversity finance deficit by creating new sources of revenue, harnessing synergies between government institutions with mandates in the area of biodiversity, optimizing the role of local governments in contributing to funding allocation, as well as improving cooperation with the private sector and local communities. The Biodiversity Finance Plan for Thailand is in line with the government of Thailand’s mission to improve the economic and social well-being of people and the quality of the environment in Thailand. Against the backdrop of ‘leaving no one behind’, the innovative finance solutions developed by BIOFIN helps strengthening the social inclusion and gender equality when discussing, planning and implementing innovative finance solutions from piloting to full scale implementation.