Thailand’s progress in the construction sector is closely linked to the sustainable development programme and energy-efficient technologies. The growth of investment demand for eco-friendly Bio-Circular-Green (BCG) projects has had a significant impact on this area, with strong recovery efforts after COVID-19. We will tell you more about the features of the modern market of real estate in Thailand, construction trends, key principles, and technologies in our material.
Content:
- The features of safe and eco-friendly construction in Thailand
- "Green construction"
- Closed-loop economics and its role in the construction sector
- The role of private companies in the real estate sector development
- Conclusion
The features of safe and eco-friendly construction in Thailand
The devastating effects of environmental pollution are becoming an increasingly serious problem in Thailand. In 2011, the government decided to support environmental protection by encouraging investments in "green technologies" and eco-friendly materials. As a result, the authorities adopted the concept of "green construction" in the real estate market.
They have developed some initiatives and subsidies to promote eco-friendly buildings in the country. Local and foreign investors have also supported these "green" initiatives. In 2021, the BCG projects received numerous investment requests for 128.4 billion baht (about $3.8 billion).
According to the country’s Board of Investment (BOI), Thailand expects BCG sectors to be about 24% of GDP over the next six years. As part of the sustainable development, the country plans to reduce greenhouse gas emissions by 20–25% by 2030 and achieve carbon neutrality by 2050.
With UN support, the Kingdom has adopted effective ways to promote energy-efficient buildings to reduce greenhouse gas emissions and provide citizens with low-cost housing, including affordable apartments in Thailand. This assistance was part of the national plan to reduce NAMA emissions (Nationally Appropriate Mitigation Actions). NAMA is seen as a key tool for mitigating the effects of climate change in developing countries through energy conservation, public transport, reforestation and renewable energy programmes.
"Green construction"
The term "green construction" refers to the eco-friendly planning, construction and operation of houses in Thailand. These buildings must meet some criteria for construction materials, maintenance, renovation, and demolition technologies to be eco-friendly.
According to the "green requirements", the country's construction sector uses renewable (local) building materials, reduces waste and energy consumption (for example, through renewable energy sources), and prevents pollutants from entering the air (including through "green roofs" as natural filters).
Thus, "green construction" helps to:
- save energy;
- use resources efficiently;
- reduce waste;
- reduce carbon dioxide emissions.
Green building creates a new market for safe materials and equipment, including:
- wooden structural panels;
- glass facades;
- floor coverings;
- glue;
- heat pumps;
- inverters and many other products safe for human health and the environment.
Closed-loop economics and its role in the construction sector
In 2018, Thailand decided to change its development strategy and gradually turn to a closed-loop economy, which is one of the most productive ways to solve the problem of waste disposal through more efficient resources and an eco-friendly construction industry.
Thailand encourages special environmental solutions such as:
- electrical products;
- eco-friendly chemicals;
- "green" polymer materials;
- recycling and reuse of waste;
- solar cell production.
The role of private companies in the real estate sector development
In March 2022, 23 private Thai organizations committed themselves to business development in a closed-loop economy, including SCG, which pays special attention to building materials, services, and green solutions.
The company focuses on resource efficiency by optimizing the production process that meets energy saving requirements, extending the service life of products and equipment, and reducing greenhouse gas emissions.
SCG also uses digital technologies to eco-friendly building processes that will help reduce construction time, improve accuracy, reduce resource consumption, minimize costs, and reduce waste on the construction site.
EEC Engineering Network Company Limited is another major market player following this closed–loop strategy. The company plays an important role in developing and building many global projects such as multifunctional buildings, new city development, and eco-industry projects. Their main goal is to achieve carbon neutrality.
Conclusion
Thailand has an excellent chance to become a model of "green building" in Asia – a region that is urbanizing faster than any other in the world is. In 2022, the country implemented two Nationally Appropriate Mitigation Actions (NAMAS) to the UN Framework Convention on Climate Change (UNFCCC). The first one involves greening housing in development projects in Thailand for low- and middle-income people. The second one is aimed at greening government buildings.
According to Isabelle Louis, Deputy Director of the UN Asia-Pacific Environment Office, the Thai government is committed to transforming the construction market and ensuring sustainable growth over the years.
Nowadays, the average cost of "green buildings" in Thailand exceeds the cost of standard properties (by about 20%), but the cost of electricity and water supply in such housing units is 20–30% lower. However, the number of "green buildings" will increase across the country, which will benefit owners and residents in the long term.
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