Thailand's BAAC Allows Farmers to Use Trees as Collateral for Loans
The Department of Business Development and BAAC in Thailand are implementing a 'trees as capital' approach, enabling farmers to use standing trees as collateral for loans. Currently, 239,921 trees have been registered in 30 provinces, valued over 188 million baht. A training session in Nan Province educated farmers on leveraging trees for credit applications and carbon credits. The initiative aims to enhance funding access without deforestation, promoting sustainable economic growth and environmental goals.
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The Department of Business Development and the Bank for Agriculture and Agricultural Cooperatives (BAAC) in Thailand are promoting a 'trees as capital' initiative, allowing farmers to use standing trees as collateral for loans. To date, 239,921 trees have been registered as collateral across 30 provinces, with a total value exceeding 188 million baht.
A recent training session in Nan Province focused on how these trees can support loan applications and generate income through carbon credits. This approach aims to improve financing access for farmers and SMEs without necessitating deforestation.
The initiative has generated strong interest, with ongoing outreach to increase awareness in additional provinces. The BAAC emphasizes the potential of trees as economic assets, facilitating sustainable funding solutions.
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