Government urged to lead the way to sustainable development

The seminar was held at the Grand Hyatt Erawan Bangkok.

Speakers agreed that the world is facing the impact of climate change and that many countries are seeking ways to reduce greenhouse gas emissions.

Many regulations have been launched to deal with climate change, including the European Union’s Carbon Border Adjustment Mechanism (CBAM) and the Clean Competition Act in the United States, speakers said.

Pathway to sustainability

Osotspa CEO Wannipa Bhakdibutr said all parties must work together on sustainable development towards carbon neutrality. “Sustainable development is hard if no regulators show the way,” she said.

SMEs need the ability and know-how to achieve sustainable development goals more than others, she said, adding that she hopes Thai regulators keep up with global development so that they can help Thai entrepreneurs achieve sustainable development goals.

Wannipa said Osotspa has been working on sustainable development since 2019. The company turns a profit and also contributes to society and environmental protection, Wannipa said.

Its efforts cover a sustainable supply chain, consumer health and well-being, sustainable packaging, water, energy and climate-change management, she said, adding that the company aims to add goals for product innovation, and quality and safety in the future.

Osotspa has an ecosystem that will enable the company and its partners to achieve carbon neutrality by 2025 and net zero greenhouse gas emissions by 2050, Wannipa said.

She also advised entrepreneurs to set clear goals for sustainable development.

 

Climate change act on the way

Pavich Kesavawong, deputy director-general of the Department of Climate Change and Environment, said a climate change act is expected to be proposed to the Cabinet earlier next year, adding that it will be comprehensive.

The new law will not be very strict, but will encourage cooperation, Pavich said.

"The act must be launched to facilitate sustainable development," he said, adding that the department will help create awareness to ensure sustainability from the grassroots to the international level.

The department is collecting carbon footprint data from several organisations and the data will play an important role in the future, Pavich said.

Large companies have the potential for sustainable development, but SMEs do not, he said.

The government must cooperate with the private sector to set up clear measures for sustainable development, such as carbon schemes and pricing, with some measures being compulsory and others voluntary, he added.

Encouraging change

Ratchada Wanitchakorn, director of the Excise Department’s Tax Planning Office, said Thailand needs to work on sustainable development as the country is a part of the global supply chain.

A carbon tax is an important mechanism for Thailand to drive trade and investment, as well as achieve carbon neutrality in 2050 and net-zero carbon emissions by 2065, she said.

A carbon tax aims to encourage entrepreneurs to offer low-carbon products that consumers can access at reasonable prices, Ratchada said.

She said a carbon tax regulation would not be strict and could take some time for people to adapt to, noting that consumers took eight years to become familiar with a sugar tax.

A climate change act is necessary to drive sustainable development in Thailand as it can facilitate carbon taxation and emissions trading.

Crisis and opportunity

Anothai Sangthong, director of Thailand Greenhouse Gas Management Organisation’s Communications and Carbon Credit Registry Office, said carbon absorption, carbon credit and emission allowance trading are playing important roles in reaching the carbon neutrality goal.

Thailand is among the countries that trade carbon credits internationally, she said, but added that the scale of the trade remains quite small in Thailand.

Even though Thailand's carbon credit market is small, it is expected to expand in the future, Anothai said.

She also expects the volume of carbon credits generated from carbon removal technologies, such as carbon capture and storage, to increase compared to those generated from energy consumption reduction.

Anothai said CBAM is both a crisis and an opportunity for entrepreneurs, adding that it is expected to cover more product categories in the future, such as glass and petrochemicals.

The first phase of CBAM covers cement, iron and steel, aluminium, fertiliser, electricity and hydrogen.

Apart from adjusting production, she advised entrepreneurs to prepare carbon footprint data to cope with CBAM, which will come into effect in October this year.

European importers might ask Thai manufacturers about their carbon footprint, she said, adding that entrepreneurs would lose competitiveness if they fail to keep up with sustainability trends.

Sustainable investment trends

Soraphol Tulayasathien, senior executive vice-president, head of corporate strategy division and head of the sustainable market development division at the Stock Exchange of Thailand (SET), said investors are interested in stocks of companies that work towards sustainable development.

The younger generation is paying attention to stocks of companies that work on environmental preservation to express themselves, he said, adding: “Apart from returns in the long run, investors need timely, relevant and reliable data.”

He said the SET is creating awareness about sustainable development and offering tools to help companies achieve carbon neutrality goals. Awareness among company employees, not just CEOs, is necessary to achieve the goals, he added.

Companies that do not work on environmental, social and governance principles will face operational difficulties, and they should avoid greenwashing to gain confidence among investors, Soraphol said.

United for a sustainable future

Sangchai Theerakulwanich, president of the Federation of Thai SMEs, said many principles like sustainable development, the sufficiency economy and the bio-circular-green economic model can be applied together.

He said the government should enhance public awareness about sustainability, adding that only a few people pay attention to the issue.

“Creating awareness is necessary [and] similar to funding for sustainable development,” he said, adding that the private sector can provide funds for helping SMEs become sustainable.

He also advised the government to take care of SMEs by stimulating exports. SMEs account for 65% of Thailand’s gross domestic product, he added.

He stressed that sustainable development is an issue involved with all parties, not only the government or large organisations. A carbon tax should not obstruct business expansion, he added.

Sustainable development is not hard if the government understands the situation and SMEs, he added.