Story and Photos: Norawit Suwannakarn, Agriculture and Food Cluster/ GIZ Thailand
The executive management of the Bank for Agriculture and Agricultural Cooperatives (BAAC) and representatives from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) Thailand Office recently went on a study visit to Germany-based public, academic, and private institutions in the field of sustainable, green and climate finance in the agricultural sector during 22-26May 2023. The five-day trip aimed to provide a team of delegates with expertise on innovative instruments and business models for green finance and sustainable agriculture, and especially climate-smart agriculture. The study visit has also provided a platform for a peer-to-peer exchange between BAAC and German institutions.
The representatives of Thai Embassy in Berlin also led a team of delegates to meet officials from the Federal Ministry for Climate and the Economy (BMWK), Federal Ministry for Economic Cooperation and Development (BMZ), and Mitigation Action Facility (TSU) on the topic of climate finance policy and the importance of climate mitigation and adaptation.
During the trip, a team of delegates visited GIZ Head office in Eschborn and had a discussion with the GIZ team at the Competency Center Financial Systems Development, providing training and advisory on the sustainable and green financial mechanism, policy, measure and tool development for farmers and agri-business with green project pipelines.
The BAAC management team also met with representatives from the German public banks, including Sparkassen Finanzgruppe (German Savings Bank Association), Helaba, Rentenbank (German Agricultural Bank) and the InsuResilience Solution Fund. to discuss feasibility innovative financial products including green credit, promotional loan for agricultural value chain and rural areas green bonds and financing for environmentally friendly projects for small-medium enterprises SMEs, and climate risk insurance.
BAAC President emphasised the learning benefits derived from the study trip, “BAAC has recognised the impact of climate change on Thai agricultural sector and the need for farmers to access financial mechanism and financial products crucial for coping with the unforeseeable risk of climate change. BAAC will continue cooperation with GIZ to introduce green and innovative finance products for supporting farmers and transformation of agricultural sector in Thailand.”
Mr. Tim Mahler, Director Business Development and former Country Director Thailand, GIZ emphasised the long relationship between the two countries, “BAAC and GIZ have a long-standing cooperation and partnership. In fact, BAAC and GIZ have partnered since 1990s to promote sustainable development, rural financial inclusion and agricultural development. Finance is always important for the agriculture sector and for farmers. Now it is even more crucial when considering the impacts of climate change. Not only finance is needed but also raising farmers’ awareness and understanding of climate change is also necessary”. ■
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