Mitr Phol to Develop ‘Carbon Credit’, Introducing New Environmentally-Friendly Thailand Carbon Credit Exchange Platform
Thailand’s Sugar Industrial Group, with cooperation of 53 organizations under Thailand Greenhouse Gas Management Organization (Public Organization) (TGGMO), has recently presented Thailand Carbon Credit Exchange Platform which aims to mobilize Thai industries towards alternative energy use in replacement with present pollution-causing energy. In this regard, the RE100 Thailand Club was launched, as well.
The development of carbon credits began with the rise of international awareness of balancing the Earth’s atmosphere according to the Tokyo Protocol in 1997, which encourages 37 developed nations to reduce greenhouse gas emission by law enforcement to reduce the gas emission every year and apply tax measures to those who greenhouse gas emission exceeds specified levels. Other countries that already signed up the protocol, including Thailand, will have to make efforts to reduce greenhouse gas emissions.
In 2015, upon the Paris Agreement, many countries have set a goal to keep the global average temperature from rising to at least 1.5 degrees Celsius before the pre-industrial era, and also formulated trading principles: Greenhouse Gas (Emission Trading System (ETS), which allows selling of the remaining greenhouse gas emission rights to others, also known as “carbon credits”. This principle is the origin of the valuation of carbon credits equivalent to emissions. 1 ton of Carbon dioxide (Carbon Dioxide) can be traded in cash between companies until it turned to a global carbon credit trading.
In July, 2021, TGGMO, along with executives from other 53 organizations, namely Securities and Exchange Commission, Electricity Generating Authority of Thailand, Mitrphol Group, and Bangchak Corp., organized a signing ceremony of a cooperation agreement to develop the domestic carbon market which hopefully results in the reduction of greenhouse gas emissions of the region for the first time. Currently, public and private sectors worldwide as well as Thailand’s cane and sugar industries are concerned with sustainable business according to the ESG principle which refers to Environment, Society and Governance. Many countries have mobilized policies or legislation to reduce greenhouse gas emissions to support the use of renewable energy.
Mr. Warawut Silpa-archa, Minister of Natural Resources and Environment, said that the Thailand Carbon Neutral Network played an important role in driving Thailand towards the goal of reducing greenhouse gas emissions in accordance with the goal to maintain the world’s average temperature of between 1.5 and 2 degrees Celsius. Members of this network are important in building an ecosystem as they promote using carbon pricing to create transparency and fairness in the carbon market as well as supporting various types of forestry projects in accordance with Thailand’s policy. Through the Thailand Carbon Credit Exchange Platform jointly developed by TGO and FTI, promotion of greenhouse gas absorption sources creates benefits for the economy, society and the environment, thus leading to reduction of the country’s overall greenhouse gas emission costs as low as possible.
The TGGMO’s Director Mr. Kiatchai Maitreewong added that founding Thailand Carbon Neutral Network or TCNN is to promote cooperation of all sectors, including the public, private and local sectors in jointly responsible for carbon dioxide emissions to net zero expected to occur in Thailand by 2030, and also in line with the global organization’s drive according to the Paris Agreement like Race to Zero, too.
The 53 network members and TGGMO, with cooperation of the Federation of Thai Industries (FTI), have developed the Thailand Carbon Credit Exchange Platform which is able to report fair price levels, resulting in reduction in the cost of the overall country’s greenhouse gas emissions to a minimum degree and international trading of the gas in the future.
In this regard, Thailand’s cane and sugar industry like Mitrphol Group already became one of Thai businesses to mobilize along with public sectors a program to reduce greenhouse gas emission in the country. It will work actively with over 53 networks that are effective and environmentally responsible for playing a key role to reduce the gas emission.
At the same time, the synergy in building that network also leads to the growth of the carbon credit market in Thailand, helping to incentivize businesses, organizations and agencies from all sectors to turn to the carbon credit market to encourage zero greenhouse gas emissions, creating a Net Zero society in Thailand. Carbon credit trading is in trend as it will become important in the future after the United States announced its environmental stance to enter a pollution-free era by 2050, with $2 trillion in funding for clean energy projects. This change should play a great part since it promotes global carbon credit trading transactions. Nonetheless, the development of the carbon credit market in Thailand still needs policy support to encourage those involved as it will lead to the development of a central market for trading carbon credits in the future.
