Thailand

Country Information

Important Dates

MRP first draft submission: 
October 2013
Allocation of Implementation Funding: 
February 2014

Market-based Approach

Thailand seeks collaboration with the PMR to:

  • Design and initially implement a domestic market mechanism to reduce energy consumption and GHG emissions in the energy sector with a view to transition to an emission trading scheme in the future;
  • Promote and support municipalities and local communities to implement GHG mitigation actions while achieving sustainable development and low carbon society goals through domestic market mechanisms; and
  • Prepare the infrastructure for market mechanisms, including database, MRV system, registry system, institutional and regulatory framework.

The PMR will support Thailand to:

  • Create an Energy Performance Certificate scheme (EPC) and Low Carbon City Program (LCC);
  • Develop a domestic MRV system. The Domestic MRV system will be designed in harmonization with international standards and meet international requirements;
  • Set up the institutional/legal framework, designing a data collection system, standardizing emission measurement, reporting and verification procedure; and
  • Build capacity for involved ministries, agencies and stakeholders

Source: Draft Market Readiness Proposal Presentation, October 2013

Emissions Trading

  • Thailand sees a mandatory ETS as one of the cost-effective tools for reducing GHG emissions and is interested in exploring the possibility of developing such a system.
  • To move toward the establishment of a mandatory ETS, Thailand needs a proper legal framework to provide institutional safeguards for emission trading and to ensure a fair, open, and equitable market.
  • In collaboration with the PMR, Thailand proposes to study the legislative practices in existing ETS, research the legal nature of the legislative package for establishing and ETS, and propose a basis legal system required for establishing ETS in Thailand.

Source: Draft Market Readiness Proposal Presentation, October 2013

Offset and/or Other Emission Reduction Crediting Programs

  • Thailand launched the Thailand Carbon Offsetting Program (T-COP) in March 2013, a carbon offsetting program that each participant (i.e. individuals, organizations, products & services, and events) can voluntarily join. It provides a platform for a participant to offset its own carbon footprint (e.g. GHG emissions from individual/event/organizational activities, product life cycles, etc.) by contributing money to retire the certified carbon credits especially the credit from projects under the Thailand Voluntary Emission Reduction Program (T-VER).
  • Thailand Voluntary Emission Reduction Program (T-VER) is a domestic GHG crediting mechanism (project-based), using methodologies derived from CDM and J-VER. The T-VER program will be officially launched by the end of 2013.

Source: Draft Market Readiness Proposal Presentation, October 2013

Other Activities to Support the Development of Market-based Mechanisms

  • Energy Performance Certificate Scheme (EPC): A proposed voluntary target-and-trade scheme to achieve energy efficiency in designated factories and buildings. Targeted entities will be energy intensive factories in manufacturing, commercial buildings and thermal power plants. The infrastructure that will be developed for EPC including database, MRV system and registry system will be used as a basis for ETS in the future.
  • Low Carbon City Program (LCC): A GHG crediting mechanism for local municipalities and communities that features a floor price for carbon credits generated from the program. The LCC will be a part of T-VER program.
  • A NAMA focused on the energy sector is being reviewed for approval by the NCCC; it would then be reviewed by the cabinet.

Source: Draft Market Readiness Proposal Presentation, October 2013

National Context

  • Thailand national greenhouse gas emission is expected to increase from approximately 230 MtCO2e in 2000 to more than 1300 MtCO2e in 2050. Main emitters are energy sector followed by agriculture and industrial sector. In Energy Sector, energy industries and transport are key drivers, totaling account for almost 70%, of the total emissions. According to the historical profile as well as the projected future trajectory of GHG emissions in Thailand, the energy sector is the national priority for mitigation efforts. The sector also represents the major abatement potential of GHG emission mitigation.
  • Thailand is currently evaluating the Nationally Appropriate Mitigation Actions (NAMAs) with a focus on the energy sector, through the Asia-Pacific Integrated Model (AIM), developed by the National Institute for Environmental Studies in Japan, to analyze the abatement potential on GHG emission mitigation within the areas of renewable energy, energy efficiency improvement, fuel switching and low carbon technologies. Thailand has not issued any formal pledge for NAMAs implementation. The NAMA pledge is undergoing for approval by the NCCC and then by the cabinet.
  • Although Thailand has not have the GHG mitigation target but there are two key policies in the energy sector which have significant impacts on GHG mitigation that are the 20-year Energy Efficiency Development Plan (EEDP) and the 10-year Alternative Energy Development Plan (AEDP).
  • EEDP aims to reduce energy intensity by 25% in 2030 compared with 2010 levels and AEDP aims to increase the share of alternative energy to 25% of final energy consumption in 2021.
  • In Thailand, low carbon economy is a part of the strategy of the Eleventh National Economic and Social Development plan (2012-2016) and GHG mitigation activities will be undertaken by relevant ministries and municipalities. For example, recently, low carbon city pilot projects were conducted at 3 cities and 1 special municipality including Khonkaen (Khonkaen province), Klang (Rayong province) and Samui (Surat Thani province) and Bangkok Metropolitan Administration (BMA) promotes utilization of municipal waste management for energy or fertilizer.

Sources: Office of Natural Resources Communication (SNC) of Thailand, 2010; Thailand Greenhouse Gas Management Organization and The Joint Graduate School of Energy and Environment, Final Report on Greenhouse Gas Emission and Mitigation and Their Scenario Studies Using Economic Models, 2012;Draft Market Readiness Proposal Presentation, October 2013

Institutional arragement related to Climate Change

  • In 2007, Office of the Prime Minister established the ‘National Committee on Climate Change Policy’ which chaired by the Prime Minister to formulate and oversee major climate change policies and provides advice on the national positions when contributing to international texts and forums.
  • Office of Natural Resource and Environmental Policy and Planning (ONEP) was approved by the Cabinet and acknowledged by the Office of the Prime Minister since 2002, the ONEP is established with a mission to develop policy and planning for managing and conserving the natural resources as well as tackling climate change issue in Thailand.
  • Thailand government established the ‘Thailand Greenhouse Gas Management Organization’ in 2007 to accomplish the country’s active mitigation performance in order to promote CDM, carbon market, and other GHG mitigation actions in Thailand.

The institutional framework undertaking climate change policy planning and coordination management within the national framework and in cooperation with multilateral environmental agreement is illustrated in figure below.

Thailand 1-2 1

Existing relevant policies and regulation

  • Thailand’s Energy Conservation Promotion Act (ENCON Act) has been in place since 1992. The objectives of the Act are to promote energy-efficient production and consumption, to promote the production of energy-efficient equipment and machinery and to promote concrete energy conservation and renewable energy development by providing financial support for implementing such a program. In energy sector, the 20-Year Energy Efficiency Development Plan (EEDP) (2011-2030) is envisioned by the Ministry of Energy targeting a 25 percent energy intensity (in term of GDP) reduction by 2030, whereas the 10-Year Alternative Energy Development Plan (AEDP) (2012-2021) by the same Ministry targets alternative energy to reach 25 percent of total energy consumption in 2021.
  • In transportation sector, the National Transport Master Plan (2011 – 2015) aims to promote cost-effective modal shift, urban transport development as well as the gateway for regional connectivity.
  • In industrial sector, the National Industrial Development Master Plan (2012 – 2031) focuses on sustainable development of Thailand’s industrial sectors via various measures including promoting environmentally friendly production.

Below are the national policies and plans on climate change in Thailand.

Thailand 1-2 2

Source: Draft Market Readiness Proposal Presentation, October 2013

Focal Point

Thailand Greenhouse Gas Management Organization (TGO) acts as the technical arm for the National Committee on Climate Change Policy (NCCC) and co-assistance secretariat to NCCC. TGO is also the CDM DNA for Thailand (www.tgo.or.th).

TGO works with the following key partners on consultations and capacity building associated with the CDM, voluntary market mechanisms, Thailand’s carbon foot print and GHG mitigation:

Source: Draft Market Readiness Proposal Presentation, October 2013

News

  • News from the Thailand Greenhouse Gas Management Organization is available here.
  • Events from the Thailand Greenhouse Gas Management Organization are available here.

All Documents & Presentations

Other documents

More documents from the Thailand Greenhouse Gas Management Organization are available here.   

  • Video clips from the Thailand Greenhouse Gas Management Organization are available here.
  • Mobilization of National Mitigation Measures (NAMAs) to Replace F-gases in Refrigeration and Insulation Foam Production (RAC-NAMA)
  • US-Thailand Cooperation on Enhancing Capacity for Low Emission Development Strategies
  • IGES Capacity Building and Consultation Meetings on Development of Domestic Carbon Market in Thailand
  • KEITI Asia Carbon Footprint Network
  • Australia-Capacity National GHG Roundtable (APCMR)
  • Thai-German Programme on Energy Efficiency Development Plan (TGP-EEDP)

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