FTI pushes for Thailand to become ASEAN’s carbon credit trading hub
The federation suggests leveraging the Stock Exchange of Thailand for carbon credit trading and offering tax incentives to attract traders
The Federation of Thai Industries (FTI) is urging the new government to prioritise promoting Thailand as a carbon-trading hub in ASEAN as part of its national ageda on carbon neutrality.
Focus should be placed on allowing the trading of carbon credits via the Stock Exchange of Thailand and providing tax benefits to attract traders, Natee Sithiprasasana, president of FTI’s Renewable Energy Club, said on Tuesday.
He pointed out that Thailand already has a head start in the trading of carbon credits thanks to the Thailand Greenhouse Gas Management Organisaton (TGO), which initiated the Thailand Voluntary Emission Reduction (T-VER) programme about 10 years ago.
T-VER is being upgraded to T-VER premium to comply with more modern international standards, giving Thailand a distinct advantage over Asean neighbours, Natee added.
The FTI, meanwhile, has been working with TGO to develop the FTIX exchange platform, Thailand’s first digital carbon credit trading platform. This, Natee said, has encountered both opportunities and obstacles.
“To become an international hub for carbon credit trading, Thailand needs clear VAT regulations and should also provide a variety of tax benefits for domestic and overseas trading, both in primary and secondary markets,” he said.
These benefits, for instance, may include capital gains tax exemption and allow the use of carbon credits for a tax deduction.
TGO reported that in the 11 months of fiscal 2024 (October 2023-August 2024), the T-VER programme had recorded the trading of 669,202 tonnes of carbon dioxide equivalent (tCO2eq), valued at 84.17 million baht, or an average of 125.78 baht per tonne.
Most of the carbon credits being traded are from biomass (293,846 tonnes), followed by solar energy (156,290 tonnes), reforestation (100,549 tonnes), and industrial wastewater management (86,500 tonnes).
Meanwhile, the FTIX platform has recorded the trading of 1,798 tonnes of carbon credit in the past 11 months, valued at 110,304 baht, or 61.35 baht per tonne.
Thailand has set a goal of achieving carbon neutrality by 2050 and net-zero carbon emissions by 2065.
