Climate Fund to drive Thailand’s low-carbon economy, says DCCE

This fund is a part of the draft Climate Change Act aiming to reduce greenhouse gas emissions, promote sustainable fuel consumption and boost Thailand’s resilience against the impact of climate change.

As a legal entity, the Climate Fund is responsible for disbursement in the form of loans or fund granting for greenhouse gas reduction or utilisation, climate change adaptation, research and development, and other activities.

DCCE director-general Phirun Saiyasitpanich told Krungthep Turakij that a hearing on the draft act will be conducted before entering the House of Representatives’ consideration.

He confirmed that the business sector agreed with this law. Despite an increase in operation cost, the Climate Fund could mitigate the burden among entrepreneurs, he said.

He emphasised that Thailand should have tools and readiness against climate change to cope with trade barriers and market competition. I believe that the Thai business sector is ready to cope with the impact of climate change on global trade, he added.

DCCE director-general Phirun Saiyasitpanich

Phirun explained that DCCE will be a part of the Climate Fund’s board of directors to supervise disbursement, including revenue from carbon credit sales, climate change mitigation schemes and government subsidies.

“The Climate Fund will assist several industries, especially small and medium ones,” he said, adding that the fund’s green loans would be granted with interests lower than those from commercial banks.

He added that this fund will support Thailand on greenhouse gas emission reports, joint investment in carbon reduction technology and boosting climate change resilience in communities.

Phirun expects the Climate Fund to generate 1.1 trillion baht in profits by 2050 from its emission trading system, loan granting, joint ventures or other forms of disbursement.

Thailand’s Climate Change Act has been designed to build a low-carbon economy and boost the business sector’s competitiveness amid trade barriers, he added.