The Climate-Smart Incentive (CSI) program provides around THB 300 million (US$ 9.3 million) to support farmers piloting climate-smart practices.

THAILAND – The Bank for Agriculture and Agricultural Cooperatives (BAAC), in partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), has unveiled a comprehensive climate-smart financing program aimed at transforming Thailand’s rice sector.

The initiative, part of the Thai Rice: Strengthening Climate-Smart Rice Farming (Thai Rice GCF) Project, combines subsidies and low-interest loans with a total budget exceeding THB 5.3 billion (US$ 164 million).

The program was officially announced in Bangkok by Mr. Paisan Hongtong, Senior Executive Vice President of BAAC, during a joint event with GIZ.

It is designed to support Thai rice farmers in adopting low-emission, climate-resilient farming practices, addressing both environmental and economic risks.

Thailand’s traditional rice farming methods, which rely heavily on continuous flooding, generate significant methane emissions, a potent greenhouse gas.

BAAC highlighted that Thailand is among the 16 countries most vulnerable to climate change over the next three decades, with projected impacts including reduced rice yields, income volatility, and threats to national food security.

Mr. Paisan Hongtong stressed the need for systemic change in rice production, stating that climate-smart approaches can simultaneously enhance productivity, improve farmer livelihoods, and reduce environmental impacts.

Climate-smart incentives

BAAC’s program introduces two key financial mechanisms under the Climate-Smart Packages.

The Climate-Smart Incentive (CSI) program provides around THB 300 million (US$ 9.3 million) to support farmers piloting climate-smart practices.

Farmers can select from three subsidy levels per rai: Package S (THB 500 / US$ 15.50), Package M (THB 1,000 / US$ 31), and Package L (THB 1,600 / US$ 49.60), with a maximum allocation for up to 10 rai per household.

Complementing this, the Climate-Smart Loan (CSL) scheme offers a credit line of THB 5 billion (US$ 155 million) with preferential interest rates for farmers who complete approved training on climate-smart technologies and financial planning.

The CSL provides both working capital and investment financing aligned with Thailand’s Bio-Circular-Green (BCG) economic model.

Timo Menniken, Country Director of GIZ Thailand, explained that through the Climate-Smart Incentive (CSI), the initiative rewards farmers for their stewardship, while the Climate-Smart Loan (CSL) bridges the gap for the necessary upfront investments in technology.

“This integrated approach de-risks the transition and builds farmer confidence, “he noted.

The five-year project targets farmers across 21 provinces, including Chiang Mai, Ubon Ratchathani, Suphan Buri, Ayutthaya, and Nakhon Sawan. Farmers can apply through local agricultural offices and BAAC branches after completing required training programs.

Published Date: February 13, 2026