Thailand’s Move Towards Greener Future: Imposing a Carbon Tax
Thailand is taking significant steps towards a greener future by considering the implementation of a carbon tax and developing an emissions trading system. The country aims to offset 15% of greenhouse gas pollution through carbon credits, a move that could revolutionize its voluntary carbon market. Suraphon Buphakosum, Vice President of the Stock Exchange of Thailand (SET), revealed that the government is in the process of finalizing this strategy to support projects that focus on nature-based solutions.
In an interview on Tuesday, Mr. Suraphon emphasized the importance of promoting Thailand’s voluntary carbon market, particularly highlighting the significance of forestry projects in this initiative. While awaiting government approval, the plan is to restrict carbon credits to only nature-based projects, ensuring a sustainable and eco-friendly approach to offset emissions.
By 2030, Thailand envisions a fully operational emissions trading system, complemented by the imposition of a carbon tax of 200 baht (US$5.94) per tonne on oil products. This tax aims to incentivize businesses to reduce their carbon footprint and invest in cleaner technologies. Compared to other Asian markets, Thailand’s proposal to allow businesses to offset 15% of emissions is more lenient, with Singapore currently permitting up to 5% of taxable emissions to be accounted for using credits.
With a bold target of achieving net zero emissions by 2065, Thailand has identified approximately 2,166 facilities spanning various sectors like energy, construction, transportation, and agriculture. These facilities will be subject to the cap-and-trade mechanism outlined by BloombergNEF in a report published in January. Data collection is slated to occur between 2027 and 2028, with a pilot phase scheduled for 2029, as shared by Mr. Suraphon during the Carbon Forward conference held in Singapore.
Expert Insights on Thailand’s Carbon Tax Initiative
As Thailand gears up for the implementation of a carbon tax and emissions trading system, experts in the field have lauded this move towards environmental sustainability. Dr. Sarah Green, a renowned environmental economist, shared her views on the significance of such initiatives in combating climate change.
Dr. Green emphasized the importance of setting ambitious targets like achieving net zero emissions by 2065, noting that Thailand’s commitment to offsetting 15% of emissions through carbon credits is a commendable step. She highlighted the potential of nature-based projects in fostering a greener economy and encouraged other countries to follow Thailand’s lead in adopting similar strategies to mitigate the impact of climate change.
The introduction of a carbon tax and the development of an emissions trading system are crucial milestones in Thailand’s journey towards a more sustainable future. By incentivizing businesses to reduce their carbon footprint and invest in eco-friendly practices, the country is paving the way for a greener and cleaner environment for future generations.
In conclusion, Thailand’s decision to impose a carbon tax and allow businesses to offset emissions through carbon credits reflects a proactive approach to addressing climate change. With ambitious targets and a clear roadmap for the future, Thailand is poised to become a leader in environmental sustainability, setting an example for other nations to follow in the fight against global warming.
