This scoping paper provides the basis for the implementation of the collaborative, multi-step process of the SEED Hack for Climate Finance in Thailand in 2021. Thailand’s high environmental richness and fastly evolving landscape of small- and medium-sized enterprises (SMEs) present a significant opportunity for the country to meet its climate action and development objectives. In particular, climate-smart SMEs- offering products and services for climate change adaptation and/or mitigation- are well-positioned to absorb and scale the environmental, social, and economic impacts of global climate finance flows in line with Thailand’s climate action objectives.

From challenges to climate finance solutions

The purpose of the multi-step SEED Climate Finance Labs series- successfully implemented in India, Thailand, Uganda, Ghana, and South Africa since 2018 - is to facilitate a hands-on process that results in targeted climate finance solutions, which finance the growth of SMEs that are actively delivering climate change adaptation and mitigation solutions across their value chains. The Hack for Climate Finance, Bangkok – a collaborative partnership between the SEED Practitioner Labs Climate Finance, British Embassy Bangkok, SWITCH SCP Facility, Go4SDGs and PAGE – offers teams the opportunity to develop climate finance solutions in the fields of conservation, clean energy, waste management, and sustainable agriculture. The climate finance solution developers along with key ecosystem actors and sustainability experts come together through the multi-step hack process to strengthen the financial sector’s capacity to successfully finance climate action SMEs and climate change-related projects in Thailand while tapping into growing international capital earmarked for climate finance purposes.

The four Hacker teams for the SEED Hack for Climate Finance, Bangkok 2021 are:

• Carbon Credit Mechanism to Incentivise good Crop Management, hosted by Three Zeros
• Carbon Offset Activity Fund, hosted by Carbon Crypto Fund 
• Digital Waste Credit Platform, hosted by GooGreens & Rittec
• Climate-Smart Agriculture Loan Platform, hosted by Deemeesook

In identifying opportunities for innovation, this scoping paper will (1) set the scene for climate action in Thailand; (2) identify the role of climate-smart SMEs for achieving climate change mitigation and adaptation objectives as well as outline the major financing challenges hindering these enterprises from achieving impacts at scale; and, (3) review the status of climate finance and SME finance, and the role of various private and public sector actors in delivering tailored financial solutions to Thailand’s most pressing climate challenges. The scoping paper will close with (4) a brief introduction to climate finance hacks for climate-action SMEs and projects during the SEED Hack for Climate Finance process in Thailand in 2021.

 You can watch the Hack for Climate Finance Scale-Up Lab Expert Workshop Videos & the Pitch Videos here.