Rome, 17 October 2025 – The Bank for Agriculture and Agricultural Cooperatives (BAAC), one of the key implementing partners of the Thai Rice: Strengthening Climate-Smart Rice Farming project (Thai Rice GCF) is on a process of launching a new loan programme and other financial support packages which will enable smallholder farmers to boost their agricultural productivity while encouraging them to lower their greenhouse gas emissions.
Speaking during the Hand-in-Hand Initiative Investment Forum 2025, which provides a platform for member governments of the Food and Agriculture Organization (FAO) to present investment plans during the annual World Food Forum, Suthee Visitwarakorn, BAAC’s Senior Vice President of the Risk Management Department, said over five million Thai households depended on rice farming for their livelihoods. Yet the rice sector faced growing challenges from climate change, while also contributing to greenhouse gas emissions from traditional farming practices.
Thai Rice GCF project is a multi-agency collaboration funded by the Green Climate Fund (GCF), the German Federal Ministry for Economic Cooperation and Development (BMZ) through the develoPPP programme, and private sector partners including Ebro Foods, MARS Food, Olam Agri and PepsiCo.
The project has been implemented through a collaborative effort of GIZ Thailand, Ministry of Agriculture and Agricultural Cooperatives’ Rice Department and Department of Agricultural Extension, Bank for Agriculture and Agricultural Cooperatives, Office of Natural Resources and Environmental Policy and Planning and the International Rice Research Institute during 2024-2028. The aim is to transform smallholder rice farming in Thailand to climate-smart and resilient models, boosting productivity, enhancing farmers’ livelihoods, strengthening market environments, and lowering greenhouse gas emissions.
Qingfeng Zhang, Asia Development Bank Senior Director of Agriculture, Food, Nature, Rural Development, Water, Urban Development, and Digital Sectors Group, said ADB also planned to invest over THB 48 billion (US$1.5 billion) through this programme from 2025–2030 to improve productivity and climate adaptation essential for to upscaling sustainability and commercial value of rice sector in Asia. Initial projects are being developed in Bangladesh, Cambodia, China, Pakistan, and the Philippines.
He also emphasised the high potential of carbon market development for the rice sector and strong interest in carbon credit from several countries.
Jens Soth, Executive Director of Sustainable Rice Platform, a multistakeholder partnership bringing together public, civil society and private sector to drive the concept of sustainable rice and responsibility investment, emphasised the importance of carbon market and “bio-economics” as a key driver. and an opportunity for” investment in utilising agricultural residues particularly rice straw for producing food containers and textiles. Such business innovation can not only optimise agricultural value chain but reduce greenhouse gas emission in the long run. ■
