Carbon credit: Crisis and opportunity for Thailand's economy

Abstract

This article has the following objectives: 1. To study the origins of the carbon credit market, 2. To analyze the carbon credit market situation in Thailand, 3. To analyze the crisis and opportunities for the Thai economy arising from carbon credits. Through literature review, it is found that over the past year, the greenhouse gas emissions has become a pressing environmental concern. The increasing levels of greenhouse gases have had adverse impacts on humans, including changes in climate and rising sea levels, negatively affecting various sectors. Consequently, countries worldwide have collaborated to reduce greenhouse gas emissions through protocols like the Kyoto Protocol, which served as a model for carbon credits. Environmental measures have gained recognition as crucial factors in trade competition, as seen in the Clean Competition Act of the United States and the European Union Emission Trading Scheme. Thailand has been making efforts to foster collaboration among all sectors to reduce greenhouse gas emissions through carbon credits. Recognizing the importance of carbon credits should stem from strategic levels and cooperation between greenhouse gas management organizations and agencies under the Ministry of Natural Resources and Environment. Large corporations and companies are registering green energy-consuming factories in compliance with carbon credit standards and developing their carbon credit registration and trading systems. Registering green energy-consuming factories is favorable for organizations' image and credibility. Carbon credit trading is still voluntary in Thailand, and the government should support and promote environmentally friendly businesses, particularly in technology and finance, to gain a competitive edge in the global market in the future.