Voluntary Carbon Credits Trading from Reforestation T-VER Projects in Thailand

Abstract

The Thailand Voluntary Emission Reduction Program (T-VER) was initiated by Thailand Greenhouse Gas Management Organization (Public Organization, or TGO) in 2014. It aims to encourage all sectors, particularly small project developers, to voluntarily participate in greenhouse gas reduction efforts in the country. Carbon credits certified under the program are called TVERs and can be used for carbon offsetting at the organizational, product, event, and individual levels. This article clarifies the voluntary carbon credit trading process in Thailand, focusing specifically on TVER credits from forestry projects. It also explains how individuals can participate in the T-VER program by either developing a project or trading carbon credits.
There are two main options for trading voluntary carbon credits in Thailand: the first option is Over-the-Counter (OTC), this involves direct negotiation between the buyer and seller of the carbon credits, once a transaction is agreed upon, it must be registered with the TGO's Carbon Credit Registry System. The second option is Carbon Credit Exchange Platform, this involves buying and selling carbon credits through a centralized exchange, such as the FTIX Carbon Credit Exchange Platform. Currently, Over-the-Counter trading dominates the market, accounting for roughly 99% of transactions in Thailand, this is likely because the FTIX, managed by the Federation of Thai Industries, is a recent development in Thailand. Furthermore, it has been found that the prices of TVERs carbon credits in Thailand are generally on par with those in international markets.