By Abbas Nazil
Thailand has approved its Climate Change Bill, a historic measure designed to introduce carbon taxes, establish an emissions trading system (ETS), and create a national climate-policy body.
The cabinet-endorsed proposals indicate that the ETS has no set launch date and will require further parliamentary approval before becoming operational.
Deputy government spokeswoman Lalida Persvivatana said the bill will serve as Thailand’s overarching climate law, establishing a comprehensive framework for managing greenhouse gas emissions across the country.
The legislation outlines six key components, beginning with carbon taxes on fuels and products.
An organic law will enable tax collection on more than 30 fuels and products, including gasoline, diesel, and liquefied natural gas, with proposed levies ranging from USD 2.5 to 3.13 per unit, although final rates remain undecided.
The bill also classifies carbon credits as sellable and transferable assets under the ETS, setting emission limits aligned with national targets and applying to sectors such as fossil fuel production, power generation, manufacturing, agriculture, and food and beverage industries.
It establishes a National Climate Policy Committee to define GHG policies and international climate positions and introduces a state climate fund to support climate-adaptation investments through various carbon credit instruments.
The law mandates the development of a GHG database and emissions-reduction plan, including penalties for falsifying emissions reports, and calls for a national climate taxonomy to classify economic activities by environmental impact.
Thailand aims to reduce greenhouse gas emissions by 47 percent by 2035 compared with 2019 levels and reach carbon neutrality by 2050, achieving net-zero emissions by 2065, with an estimated USD 7 billion in investments needed over the next decade.
The Climate Change Bill is expected to impact industries representing roughly 37 percent of Thailand’s GDP, with phased implementation covering high GHG emitters, petroleum and chemical sectors, and agriculture and electronics over three stages.
Financial institutions have welcomed the bill, emphasizing that climate action is increasingly viewed as a competitive advantage for Thai businesses in global markets.