Thailand is planning to impose a carbon tax on three major sectors of the economy: transport, energy and industry.
With the help of this measure, Thailand’s Excise Department believes it will help the country meet its goal of reaching net zero carbon emissions by 2050 and net zero greenhouse gas (GHG) emissions by 2063.
The intended measure will also aim to reduce the cost of imported fuel.
As a result of the carbon tax, companies will be expected to starting relying to a greater extent on renewables, thus curbing their CO2 emissions by up to 30%, according to director of the Tax Planning Bureau of the Finance Ministry’s Excise Department, Nutthakorn Utensute.
The exact date as well as other details of the tax introduction remain undisclosed at this time.
But what is known is that currently there is an ongoing study of the tax, which is expected to be completed this year.
Thailand’s energy sector is responsible for some 35% of the nation’s total carbon dioxide emissions, whereas transport and industry each account for 32% and 27% of the total emissions, respectively.
Reducing emissions is a key measure designed to mitigate climate change around the world, and is quickly becoming one that is integrated with the global economy.
For instance, already in October 2023, the EU is set to impose its carbon border adjustment mechanism on seven goods that are imported, and in 2026, that mechanism will mandate companies to report their annual emissions.
Director of the Climate Change Management and Coordination Division Rosalind Amornpitakpun shared that the planned carbon tax and the nation’s carbon credit trading scheme ought to be worked into the Thailand Climate Change Act as emissions reduction measures for the industrial, transport and energy sectors.
These steps will, according to Amornpitakpun, help the country prepare for the upcoming COP28 Climate Conference, which will be held in Dubai later this year.