Thai electric bus operator Energy Absolute has sold 1,916 carbon offset credits to KliK Foundation, a Swiss fossil fuel group, as reported by Reuters on January 8. These carbon credits are the first batch generated from Energy Absolute’s Bangkok E-Bus Program, the first emission reduction program authorized under Article 6 of the Paris Agreement in Asia, and the second globally. Energy Absolute generated these credits by operating a fleet of up to 4,000 electric buses in Bangkok, replacing petrol-fueled vehicles. The credits were priced at more than USD30 per credit, but the exact value of the deal has yet to be disclosed. The Swiss company has agreed to buy offset credits for up to 1.5 million tons of carbon dioxide emissions through 2030 from Energy Absolute, as part of its plan to purchase 20 million credits by the end of the decade.

Energy Absolute positions itself as a pioneer in the field of carbon offsets, stating the substantial potential of the market. According to Article 6.2 of the Paris Agreement, countries can adopt a system of national accounting for greenhouse gas emissions with common principles to realize cross-border carbon credit exchanges, known as Internationally Transferable Mitigation Outcomes (ITMO). The recent transaction builds on an ITMO purchase agreement inked between Energy Absolute and KilK Foundation in June 2022. This landmark deal is expected to contribute to the electrification of Thailand’s mobility sector and help the Swiss oil importer offset its emissions. Furthermore, it may inspire other private sector entities in Thailand and worldwide to speed up their climate action.

Sources:

https://www.reuters.com/business/environment/swiss-thai-groups-close-first-sale-paris-agreement-carbon-offsets-2024-01-08/

https://www.klik.ch/news/news-article/climate-protection-programme-approved-by-switzerland-thailand

https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/energy-transition/010824-switzerland-thailand-conclude-first-article-62-deal-in-landmark-move-for-carbon-markets