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The Thailand Eastern Economic Corridor (EEC) is the result of a strategic initiative undertaken by the Thai Government beginning in 2015 to raise the nation to achieve high-income status within 20 years. The EEC special development zone encompasses three provinces: Rayong, Chonburi, and Chachoengsao. It targets investments and the development of innovative, high value industries in 12 target sectors including digital and smart electronics, aerospace, smart agriculture, and more.
In order to ensure that Thailand’s economic development goals are achieved in a sustainable and environmentally conscious manner, the EEC has adopted the BCG model, which integrates the concepts of a Bio-Economy, Circular Economy, and Green Economy.
The Bio-Economic model primarily focuses on the use of biotechnology and biomass to produce goods, services, or energy. Promoting the Thailand Bio-Economy will help Thailand realize increased value from its agricultural activities and natural resources, 80% of which are currently sold with minimal processing or “value-add.”
The Green Economy model aims at reducing environmental risk and scarcities through sustainable development while preserving the environment.
The Ellen MacArthur Foundation defines the Circular Economy as an “… economy that is restorative and regenerative by design and aims to keep products, components, and materials at their highest utility and value at all times, distinguishing between technical and biological cycles.” While the Thailand EEC is pursuing all aspects of the BCG model, the Circular Economy is most applicable to the industrial investments and development targeted by the EEC.
To visually depict the circular economy concept, the Ellen MacArthur Foundation has developed the following diagram, which is nicknamed the “butterfly diagram.”
The butterfly diagram depicts the flow of materials, nutrients, components, and products of the economy, and includes an element of financial value.
The EEC has identified three drivers of Thailand’s Circular Economy:
Thailand has identified four pillars to adapt international best practices to its circular economy framework.
Manufacturers can optimize their value chains by focusing on three key dimensions of circularity.
Thailand has established a clear vision and strategy, incorporating the fundamentals of the Bio Economy, the Green Economy, and the Circular Economy, to evolve towards the Thailand 4.0 Innovation-Driven Economy and achieve “high-income status” by 2036 through environmentally and financially sustainable investments.
Authored by
Frank Timmons is a Senior Manager based in our Thailand office.
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