Thai economy must accelerate decarbonisation as global restrictions rise: NESDB
The National Economic and Social Development Council (NESDB) has issued a warning that Thailand must take more decisive actions to turn its carbon reduction plans into reality.
The country is facing mounting regulatory pressure from export markets and foreign investors, necessitating a proactive response.
Danucha Pichayanan, the secretary-general of NESDB, highlighted a significant regulation impacting Thai exports – the Carbon Border Adjustment Mechanism (CBAM) introduced by the European Union. CBAM will impose charges on exporters who fail to adopt technology to reduce carbon emissions that fuel global warming and climate change. The transition phase of CBAM is set to begin in October this year, when importers of goods to the EU will be required to report greenhouse gas from production of imports. However, charges for excess greenhouse emissions will only be levied from 2026, as stated in the EU’s CBAM document issued last December.
NESDB’s Danucha explained that CBAM acts as a new trade barrier, demanding Thai manufacturers and exporters meet higher standards.
On foreign investment, Danucha said that as a major global production base, Thailand needs to prepare for the increasing demand for clean energy in production processes and specific industries.
New investors are increasingly seeking 100% renewable energy industries, driving Thailand to gradually phase out coal-fired power plants and increase the share of electricity generated from clean energy sources, he said.
Danucha is registered as a board member of national energy conglomerate PTT, according to its website.
He also addressed management of increasingly frequent and severe natural disasters caused by global warming. He urged the government to allocate adequate budget to mitigate the impacts from floods and drought which have caused extensive damage and human tolls in recent years.
Climate change-related damage cost Thailand an estimated 0.82% of GDP between 2000 and 2019, the 9th highest globally. In 2011, the damage from flooding alone reached 1 trillion baht, Danucha said.
The National Water Policy Committee has planned water management strategies collaboratively at both the regional and local levels. Emphasis is placed on constructing mid-sized and small-scale water sources, reservoirs for storage during the dry season, and managing water volume during the rainy season. River basin committees and other mechanisms have been implemented to regulate water usage for consumption, domestic use, and agricultural purposes, Danucha said.
He added that the agricultural sector, which is highly vulnerable to impacts of global warming and climate change, requires adaptation measures.
These include the implementation of water-saving techniques, the use of drought-tolerant crops, and the promotion of agricultural practices that minimise environmental impacts.
Research and development are ongoing to explore innovative solutions and technologies for climate resilience and sustainable agriculture, Danucha said.
