Thailand is considering a proposal to allow businesses to offset up to 15% of their greenhouse gas emissions using carbon credits under a planned emissions trading system. The initiative aims to boost the country’s voluntary carbon market, particularly for nature-based projects.
Suraphon Buphakosum, Vice President and Head of Sustainability Service Development at the Stock Exchange of Thailand (SET), highlighted that the move is intended to stimulate the voluntary carbon market and encourage investment in forestry projects. However, the scheme remains subject to government approval and will only permit credits from nature-based initiatives.
Thailand plans to fully implement its emissions trading system by 2030 and is also preparing to introduce a carbon tax of 200 THB (USD 5.94) per tonne on oil products. The proposed offset limit of 15% is relatively lenient compared to other Asian markets; for instance, Singapore currently caps the use of carbon credits at 5% of taxable emissions.
As part of its broader climate strategy, Thailand has set a target to achieve net-zero emissions by 2065. The government has identified approximately 2,166 facilities across sectors such as energy, construction, transportation, and agriculture that will be included under its cap-and-trade mechanism.
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