Net Zero driving carbon credit shortage
The Thai government's commitment to achieving net zero emissions by 2050 is causing a shortage in the carbon credit market because of increasing demand, experts say.
According to the Thailand Greenhouse Gas Management Organisation, there are currently around 15 million tonnes of carbon credits available in the Thai market. However, only a small fraction of these credits are being traded because many businesses are choosing to hold on to their credit to offset their own emissions.
The high demand for carbon credits is also being driven by speculation. Some investors are buying up carbon credits in the hope that prices will continue to rise.
The shortage has several implications for businesses. For example, it is making it more difficult for businesses to meet their emissions reduction targets as well as more expensive for them to offset their emissions.
The Thai government is now taking steps to address the shortage and intends to introduce a new carbon credit trading scheme that should increase the supply of carbon credits and make the market more efficient.
