Industrial Transformation in ASEAN A Cluster-Driven Model for Regional and Global Collaboration 2026

Financing mechanisms underpin the energy transition by attracting capital flows, mitigating investment risk and accelerating the scale-up of clean energy infrastructure. Industrial transformation depends on timely, affordable and blended capital. Well-designed financial mechanisms connect global capital with local opportunities. Clusters provide the proof-of-concept platforms financiers need to translate roadmaps into investable projects.3.4 Finance CASE STUDY 8 Saraburi Sandbox – mobilizing capital for industrial decarbonization Context: The Saraburi Sandbox initiative, a public– private–people partnership launched in August 2023, is accelerating industrial decarbonization in Saraburi Province, which produces nearly 80% of Thailand’s cement and is among the country’s most emissions-intensive regions.124 Objective: The initiative aims to decarbonize the cement sector by aligning policies, mobilizing strategic finance and cultivating collaboration, positioning Saraburi as a decarbonization test area modelling a low-carbon industrial transformation. Intervention: The Saraburi Cluster demonstrates how strategic financing, anchored in policy alignment and collaboration, unlocks transformation. –Roadmap and financial catalyst: The Thailand 2050 Net Zero Cement and Concrete Roadmap,125 developed by the Global Cement and Concrete Association (GCCA), the Thai Cement Manufacturers Association (TCMA) and SCG, aims for a 45% emissions cut by 2030 and net zero by 2050. Its visibility positioned Saraburi as Thailand’s first low-carbon cement and industrial cluster. –Global support: Recognition of the roadmap at the 2022 United Nations Climate Change Conference (COP27), where the GCCA facilitated dialogue with the Canadian government, secured CAD 8 million (Canadian dollars) from Canada’s Green Fund to accelerate sector decarbonization. The support combines technical assistance and investment measures, including a mobile carbon capture unit. –Public-private-people partnership: Uniting government, industry and local stakeholders enabled 85% low-carbon cement adoption, expansion of alternative fuels (biomass, solar energy, refuse-derived fuel), and renewable and energy crop pilots. –Community impact: Partnerships supported regenerative projects, turning community waste into value, food- waste-to-protein biotechnology and ecotourism. They delivered local benefits and strengthened blended finance opportunities. In a time of global uncertainty – from economic slow-down to tightening climate regulations and evolving sustainability standards – transitioning to a low-carbon, circular economy is not only an environmental responsibility but a necessity for long-term competitiveness and resilience. This journey demands public-private-people partnership, innovation and inclusion. The Saraburi Sandbox demonstrates how area- based PPP partnership can drive this transition and serve as a replicable model to accelerate industrial decarbonization and advance the nation’s net-zero pathway. Thammasak Sethaudom, President and Chief Executive Officer, Siam Cement Group (SCG) Image credit: Courtesy of Saraburi Sandbox. 24 Industrial Transformation in ASEAN: A Cluster-Driven Model for Regional and Global Collaboration