Thailand to Launch Innovative Carbon Credits Market to Revitalize Trading
Amid Weak Demand and Low Prices, the New Platform Aims to Energize Thailand's Carbon Market
Thailand is preparing to launch a new carbon credits market in 2025, a strategic move aimed at revamping the nation's trading infrastructure to better align with global carbon reduction efforts.
As Southeast Asia's second-largest economy, Thailand faces challenges related to weak demand and declining prices in its existing carbon market, which have hampered effective trading.
The Stock Exchange of Thailand (SET) will run the new platform, leveraging its established trading systems and wide investor base to enhance market activity.
Pornanong Budsaratragoon, Secretary-General of Thailand's Securities and Exchange Commission, emphasized the need for a more dynamic carbon credit market.
"Thailand requires a much more active carbon credit market," Pornanong remarked in a recent interview.
"The local stock exchange will offer trading expertise and a wider base of investors to help it succeed," she added.
This initiative follows calls from Thaksin Shinawatra, the influential figurehead of the ruling party, who underscored the importance of a new trading venue for carbon credits.
This is part of broader efforts to strengthen Thailand's struggling stock market.
Oversupply has been a significant challenge for Thailand's domestic carbon offset trade.
Between 2016 and October 2024, approximately 3.5 million tonnes of carbon credits were purchased domestically, while the market generated about 20.5 million tonnes of credits, according to the BloombergNEF report.
Thailand also engages in international markets and has recently signed agreements facilitating country-to-country credits trading.
Alongside nations such as Indonesia, Malaysia, and Vietnam, Thailand harbors substantial potential to meet global demand as the carbon credits market advances.
The planned carbon credits market dovetails with Thailand's commitment to green pledges, as the nation seeks to enhance its environmental strategies and meet international standards.
In addition, Thailand's geographical and economic position in Southeast Asia poises it as a significant player in supplying credits on a global scale.
The advent of the new carbon market framework marks a crucial step in Thailand's environmental policy, reflecting the growing emphasis on sustainable development within the region.
As international interest in carbon credits accelerates, Thailand endeavours to solidify its place as a preeminent contributor to the global trading landscape.
As Southeast Asia's second-largest economy, Thailand faces challenges related to weak demand and declining prices in its existing carbon market, which have hampered effective trading.
The Stock Exchange of Thailand (SET) will run the new platform, leveraging its established trading systems and wide investor base to enhance market activity.
Pornanong Budsaratragoon, Secretary-General of Thailand's Securities and Exchange Commission, emphasized the need for a more dynamic carbon credit market.
"Thailand requires a much more active carbon credit market," Pornanong remarked in a recent interview.
"The local stock exchange will offer trading expertise and a wider base of investors to help it succeed," she added.
This initiative follows calls from Thaksin Shinawatra, the influential figurehead of the ruling party, who underscored the importance of a new trading venue for carbon credits.
This is part of broader efforts to strengthen Thailand's struggling stock market.
Oversupply has been a significant challenge for Thailand's domestic carbon offset trade.
Between 2016 and October 2024, approximately 3.5 million tonnes of carbon credits were purchased domestically, while the market generated about 20.5 million tonnes of credits, according to the BloombergNEF report.
Thailand also engages in international markets and has recently signed agreements facilitating country-to-country credits trading.
Alongside nations such as Indonesia, Malaysia, and Vietnam, Thailand harbors substantial potential to meet global demand as the carbon credits market advances.
The planned carbon credits market dovetails with Thailand's commitment to green pledges, as the nation seeks to enhance its environmental strategies and meet international standards.
In addition, Thailand's geographical and economic position in Southeast Asia poises it as a significant player in supplying credits on a global scale.
The advent of the new carbon market framework marks a crucial step in Thailand's environmental policy, reflecting the growing emphasis on sustainable development within the region.
As international interest in carbon credits accelerates, Thailand endeavours to solidify its place as a preeminent contributor to the global trading landscape.
