Activity

Thailand is actively developing and launching new initiatives to establish a robust carbon credit market. Here’s a summary of the key developments:
* New Trading Platform and Voluntary Market: The Securities and Exchange Commission (SEC) announced plans to launch a new carbon credit trading platform and a voluntary carbon market by 2027. The Stock Exchange of Thailand (SET) is expected to operate this new platform, leveraging its trading expertise and investor base to boost activity.
* Crypto-Friendly Regulations: To stimulate the market and attract digital asset firms, the Thai government is revising regulations to allow the tokenization of carbon credits, carbon allowances, and renewable energy certificates using blockchain technology.
* Partnership with ICE: The Stock Exchange of Thailand (SET) and Intercontinental Exchange (ICE) signed a Memorandum of Understanding (MoU) in February 2025 to collaborate on developing Thailand’s carbon market. This partnership aims to leverage ICE’s global expertise in energy and environmental markets to establish a transparent and comprehensive trading platform.
* Carbon Tax Mechanism: In March 2025, the Thai cabinet approved a carbon tax mechanism, incorporating carbon pricing into fuel and related product excise taxes at a rate of 200 Thai baht per ton (approximately 5.9 USD).
* Offset Limits: Thailand is setting a carbon credit offset limit of 15% for its voluntary carbon market, aligning with Taiwan’s cap and exceeding Singapore’s 5% limit, hoping to stimulate market growth.
* Existing Platforms and Programs: While new initiatives are being launched, Thailand already has programs like the Thailand Voluntary Emission Reduction Program (T-VER) and the Federation of Thai Industries (FTI) has launched its Renewable Energy and Carbon Credit Exchange Platform (FTIX) to facilitate domestic carbon credit trading.
* Overall Goal: These efforts are part of Thailand’s broader strategy to become a carbon trading hub in ASEAN and achieve carbon neutrality by 2050 and net-zero emissions by 2065. The full carbon trading system is planned to be operational by 2030, with a mandatory market potentially launching by 2029 depending on the progress of the Climate Change Act.
The aim is to address the oversupply and low prices that have previously hampered Thailand’s carbon credit market, attracting more participants and driving investment in emission reduction initiatives.

Video courtesy of StockInvestorDaily

Video courtesy of StockInvestorDaily