The iron and steel industry is considered an industry of economic importance both domestically and globally that is currently facing challenges. With the worsening of the climate crisis, various greenhouse gas (GHG) measures are addressed globally, including the Carbon Border Adjustment Mechanism (CBAM), which may affect the ability of the small and medium enterprises (SMEs) to export iron and steel, as well as related products. Moreover, the SMEs in the iron and steel industry still have a limitation in accessing information and adjust their business operations towards low-carbon production. Therefore, equipping the entrepreneurs with good understanding of consequences from the CBAM measures as well as provide seed funding to co-invest in transforming the businesses to low-carbon production is essential.

Thai Climate Initiative Fund (ThaiCI), under the collaboration between GIZ and Environment Fund, under the Office of Natural Resources and Environmental Policy and Planning (ONEP), foresees the importance of de-coupling the business growth and GHG emissions. This will not only assist Thailand in achieving its Nationally Determined Contribution (NDC) targets, but also maximise the competitiveness of Thai SMEs in the international market. With this, the ThaiCI Fund calls GHG mitigation proposals from the SMEs in the iron and steel industry with 50% subsidy, up to a maximum of 5 million baht per project, to invest in and adjust their business operation towards low-carbon production, together with providing trainings to prepare the interested SMEs for the funding proposal development and CBAM measures.

Preparing SMEs for ThaiCI’s call for proposal

The training on “proposal development project on greenhouse gas mitigation in the production process in the iron and steel industry sector” during 7-8 October 2024 at Amari Hotel, Bangkok

The training on the GHG mitigation proposal development from the production process in the iron and steel industry was held during 7-8 October 2024 at Amari Hotel, Bangkok, where 24 participants from 19 companies were selected to join.

The training workshop was designed to enhance the capacity of SMEs in developing the project proposal in alignment with international standards and the ThaiCI Fund’s requirement. The training uses a lecture format for mutual understanding before practicing. It allowed the participants to familiarise the concept of holistic approach in proposal development and enhanced critical thinking process through practical exercises and experience sharing. Moreover, the inquiry from participants during workshop and technical input was provided by the experts from the Iron and Steel Institute of Thailand to enhance the quality of the proposal for this round of call for proposal under ThaiCI fund.

Equipping iron and steel entrepreneurs with Good Practices Guideline in transforming to low-carbon production

Training on “Good Practices Guidelines and process to transform the iron & steel and Aluminum sector towards low-carbon and and Embedded Emissions Reporting” organised on 5 November 2024 at Eastin Grand Hotel Phayathai

In addition, ThaiCI provided a training on “Good Practices Guidelines and process to transform the iron & steel and Aluminum sector towards low-carbon and Embedded Emissions Reporting” to SMEs which included the knowledge exchange on CBAM measures as well as the reporting procedure of the embedded emissions. The training was co-organised between GIZ and Department of Climate Change and Environment (DCCE) on 5 November 2024 at Eastin Grand Hotel Phayathai Bangkok. The training comprised of the presentation from the Thai experts addressing recommendations to the CBAM measures, as well as practices from the EU expert on embedded emissions reporting.