The Thai government is considering tax incentives to companies that align with the government’s efforts to reduce carbon emissions, as reported by Bangkok Post on May 30. According to Jinanggoon Rojananan, Deputy Secretary-General of Thailand’s National Economic and Social Development Council, tax incentives are needed to prompt the Thai private sectors to reduce carbon emissions and meet the country’s goal of reaching carbon neutrality by 2050 and net-zero greenhouse gas (GHG) emissions by 2065. The Deputy Secretary-General also suggested that the government facilitate the promotion of investment in high technology and the purchase of carbon credits to further reduce emissions.
According to an investigation by the Federation of Thai Industries (FTI) in 2021, 70% of the Thailand’s 45 industrial groups agreed to the country’s long-term climate plans. Furthermore, around 10,000 enterprises have signed up for the Thailand Voluntary Emission Reduction Program (T-VER), an initiative launched by the Thailand Greenhouse Gas Management Organization (TGO) in 2013. As of 2020, the initiative had registered 191 projects that are expected to reduce 5.28m tons of CO2 emissions per year. On the other hand, the T-VER program encourages public and private organizations to take responsibility for their carbon footprints by purchasing carbon credits. The pending tax incentives for those proactive in emissions reduction could attract more participants to the T-VER program and help Thailand establish a carbon trading market. As of 2021, 45 nations have rolled out a carbon market, while over 65 countries were considering implementing one.