Thailand greenhouse gases mitigation pathways via carbon pricing

Abstract

Greenhouse gases are the major causes of climate change and global warming. This rise in temperature can disrupt weather patterns, melt glaciers, raise sea levels, harm ecosystems and cause severe natural disasters. Carbon pricing mechanisms, including carbon tax policies and emissions trading schemes (ETS), are one of the key decarbonization tools by putting a price on the greenhouse gases equivalent of those emissions. This essentially means that polluters have to pay for the environmental damage they cause. Currently, more than 30 countries around the world already adopted this mechanism, with more planning to implement them in the future. Thailand is one of those countries that are still in the early stage of carbon pricing policy development via Climate Change Act. This study investigates the diverse approaches of carbon pricing mechanisms implemented globally to generate knowledge and insights for carbon pricing system development in Thailand. The findings are tailored to the Thai context, proposing a three-phase framework and recommendations for an effective carbon pricing mechanism. The first phase focuses on laying the groundwork by developing the framework and raising public awareness about carbon pricing. The second phase involves piloting the mechanism in key industries to assess its effectiveness and identify areas for improvement as well as develop measures to mitigate potential negative impacts on low-income earners and national competitiveness. Finally, the long-term phase entails expanding the mechanism to encompass a wider range of industries and fostering collaboration with neighboring countries to develop joint financial measures that support the transition to a low-carbon economy