Thailand's Climate Change Act is Coming in 2026

Thailand's Climate Change Act is Coming in 2026 

Businesses Mandated to Purchase No More Than 15% Carbon Credits Funds Allocated to Localities for Building Resilience to Climate Change

Earlier in October, the Director-General of the Climate Change Department provided a detailed explanation of the "Global Warming Act" (its popular nickname) to ensure Thailand has a clear action plan according to the timeline:

2026: Expected successful enactment of the "Climate Change Act." 

2050: Achievement of Carbon Neutrality goal. 

2065: Achievement of Net Zero greenhouse gas emissions goal.

—----------

The 13 sections plus one in this law are full of interesting content that many have been waiting for. Carbonoi has summarized some key issues for you to read. Let's see what Thailand's first hashtag#GlobalWarmingAct will be empowered to do:

Establish a greenhouse gas reduction strategic plan every 5 years from 2030 until 2050 and increase renewable energy use.

Mandate organizational carbon footprint data reporting in the future. The types and sizes of businesses required to report will be determined in subsequent sub-laws.

Create an Emissions Trading System (ETS) mechanism for greenhouse gas allocation, emphasizing emission reduction before allowing carbon credit offsets of no more than 15%.

Impose a carbon tax to reflect true cost, focusing on three products: oil, natural gas, and coal.

Establish a financial mechanism via a Climate Fund to cope with increasingly severe natural disasters. Initial government funding of 5 billion baht will accumulate through the ETS mechanism, projected to reach 1.1 trillion baht by 2050.

Develop a Climate Risk Profile with localized risk data covering all of Thailand, allowing local authorities to create area-specific adaptation plans. Local Administrative Organizations (LAOs) will receive 10% of specific tax revenues as subsidies.

Define penalties, but no criminal charges or imprisonment, focusing on fines to be used for building a low-carbon economic ecosystem. Criminal penalties apply only in cases of intentional illegal acts.

The "plus one" section covers the Carbon Border Adjustment Mechanism (CBAM) to establish a Thailand CBAM similar to those in the European Union, the United Kingdom, and the United States. Discussions with the Customs Department are ongoing.

Of course, this Act will have both winners and losers and does not only involve the business sector. Everyone must share responsibility as fairly as possible. Thai society will build resilience to climate change impacts and transition to a hashtag#LowCarbonEconomy more rapidly.

Thank you for the information from igreenstory and read the lecture content by Dr. Pirun Saiyasitpanich, Director-General of the Department of Climate Change and Environment, at https://lnkd.in/dvmdWeNk