Thailand to Implement Carbon Tax in Bid for Sustainable Energy
Thailand moves towards carbon tax implementation as part of efforts to reduce emissions and promote environmental sustainability.
Thailand is set to implement a carbon tax later this month as part of its strategy to curb greenhouse gas emissions and support environmental sustainability.
The announcement followed the signing of a cooperation agreement on Monday between the Thai government, PTT Plc, and Bangchak Corporation Plc, aimed at raising awareness about the new tax and sustainable energy consumption.
The regulation, which was approved by the cabinet two weeks ago, is currently under review by the Council of State.
The carbon tax will be incorporated into the existing oil tax structure without burdening consumers directly.
The European Union has acknowledged the move, marking international recognition of the initiative.
The carbon tax will be calculated at a rate of 200 baht per tonne of carbon dioxide equivalent, adjusted according to the emission factor for each type of oil.
Oil producers will be eligible for a tax reduction if they manage to reduce emissions below a specified threshold.
To ensure the success of this tax and the wider goal of promoting sustainable energy consumption, the Excise Department is working with Chulalongkorn University’s Faculty of Economics, along with PTT Oil and Retail Business Plc (OR) and Bangchak Corporation.
Together, they will spearhead educational initiatives to increase awareness of the carbon tax and encourage low-carbon energy use.
As part of these efforts, OR will display information about greenhouse gas reduction at PTT Stations during fuel refills.
The Green Miles programme by Bangchak will also contribute to the initiative, allowing members to track their greenhouse gas reductions in the form of trees planted under the 'Your Tree' campaign, which will be visible through the Bangchak mobile app.
This initiative, launching on March 1, aims to link consumers’ eco-friendly fuel choices with environmental conservation.
The carbon tax is expected to impact consumer behavior by informing them about the amount of carbon dioxide emissions generated with each fuel refill, fostering a shift towards more sustainable energy practices.