Thailand is set to introduce its voluntary carbon market (VCM) by 2027, as confirmed by the country’s Securities and Exchange Commission. The move comes as part of Thailand’s broader strategy to establish a comprehensive carbon trading system by 2030.
Key Developments in Thailand’s Carbon Market
The Thai government has set a carbon credit offset limit of 15%, aligning with Taiwan’s cap and significantly surpassing Singapore’s 5% limit. Authorities expect this policy to stimulate market growth and attract investment in carbon trading initiatives.
During the Carbon Forward Asia conference in Singapore, Suraphon Buphakposum, vice president of sustainability services development at the Stock Exchange of Thailand, stated that the voluntary market would primarily focus on nature-based carbon credits, especially those linked to forestry projects.
Thailand’s approach differs from its regional counterparts, as Vietnam has proposed a 20% offset limit, while South Korea and Singapore maintain stricter caps of 5%. The Thai government also plans to impose a carbon tax of THB 200 per ton (USD 5.95) on petroleum products, starting in March.
Record Carbon Credit Transactions Under T-VER Program
Thailand’s T-VER (Thailand Voluntary Emission Reduction Program) recorded 101,894 tons of carbon credit transactions between October and December 2024, with a total value of THB 17.78 million (USD 528,000). Most credits originated from renewable energy projects.
In December, carbon credit prices from forestry and agricultural projects surged, reflecting global trends. Prices ranged between THB 1,700 to 2,076 per ton (USD 50.5 to 61.7), driving the quarterly average price to THB 174.45 (USD 5.1), a 40% year-on-year increase. Despite the rise, prices remain below Thailand’s upcoming carbon tax rate.
Mandatory Carbon Market by 2029?
Thailand has set a net-zero emissions target for 2065 and has identified 2,166 facilities across energy, construction, transportation, and agriculture for inclusion in its future cap-and-trade system.
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