Strengthening Thailand's climate change legislation before its implementation is crucial
Thailand is set to implement its Climate Change Act in 2026, joining the global effort to combat climate change. However, the road to a sustainable future is fraught with challenges, particularly in the areas of carbon pricing mechanisms, renewable energy transition, and climate fund creation and governance.
Carbon Pricing Mechanisms: Balancing Economy and Environment
The design and implementation of an Emissions Trading Scheme (ETS) will be crucial in ensuring that carbon pricing mechanisms align with Thailand's socio-economic context. Achieving this requires wide stakeholder consultations, employing technical expertise, and aligning the TH-ETS with national targets while accommodating practical realities.
Renewable Energy Transition: Breaking Away from Fossil Fuels
Thailand's continued reliance on coal and fossil fuels poses a significant barrier to a successful renewable energy transition. To overcome this, the country needs to upgrade its energy infrastructure, strengthen regulatory frameworks, and align private sector initiatives with national climate targets.
Climate Fund Creation and Governance: Institutional Clarity and Permanence
Institutional fragmentation and temporary coordinating bodies have raised concerns about the sustainability of institutional oversight for long-term goals like net zero. To address this, institutional responsibilities for climate monitoring and fund management must be clarified and assigned long-term, with a permanent coordinating entity or mechanism established to ensure consistency and reduce bureaucratic delays.
Private Sector Engagement: Aligning Interests for a Sustainable Future
Limited meaningful engagement and alignment between the private sector and climate action are a significant hurdle. To overcome this, a National Determined Contribution (NDC) Action Plan can be adopted to formalise public-private collaboration, foster dialogue to align standards, and incentivise private sector investment in renewables and green technologies.
These challenges and potential solutions highlight the need for institutional clarity and permanence, technical and legislative rigour in carbon pricing design, infrastructure and regulatory upgrades for renewables, and stronger public-private partnerships aligned with national climate ambitions.
The implementation of Thailand's Climate Change Act is not without its constraints, with powerful industries and vested interests often pushing against climate action. However, with the right strategies in place, Thailand can pave the way for a sustainable future, contributing to the achievement of SDGs 7 (Energy), 11 (Cities), 13 (Climate), 15 (Biodiversity), and 16 (Peace).
This article was first published on Fulcrum, ISEAS - Yusof Ishak Institute's blogsite, and contributes to the discussion on Carbon & Climate, Energy, and Policy & Finance.
[1] GIZ and DCCE (2022) Stakeholder Consultations on Thailand's Emissions Trading Scheme. [2] Watcharapol Supajakwattana (2021) The Role of Private Sector in Thailand's Climate Change Mitigation. [3] Ministry of Energy (2020) Thailand's Climate Change Master Plan 2015 to 2050. [4] IEA (2021) Thailand's Energy Outlook.
- The Emissions Trading Scheme (ETS) in Thailand, aimed at balancing economy and environment, will necessitate wide stakeholder consultations, employing technical expertise, and aligning the TH-ETS with national targets, while taking practical realities into account.
- Thailand's renewable energy transition, aimed at breaking away from fossil fuels, requires upgrading energy infrastructure, strengthening regulatory frameworks, and aligning private sector initiatives with national climate targets.
- Institutional fragmentation and temporary coordinating bodies raise concerns about the sustainability of institutional oversight for long-term goals like net zero. To address this, institutional responsibilities for climate monitoring and fund management must be clarified and assigned long-term, with a permanent coordinating entity or mechanism established.
- Limited meaningful engagement and alignment between the private sector and climate action are a significant hurdle. A National Determined Contribution (NDC) Action Plan can be adopted to formalize public-private collaboration, foster dialogue to align standards, and incentivize private sector investment in renewables and green technologies.
- The challenges in carbon pricing design, renewables infrastructure, and private sector engagement, as well as the need for institutional clarity, highlight the importance of technical and legislative rigor, infrastructure and regulatory upgrades, and stronger public-private partnerships aligned with national climate ambitions.
- Despite challenges from powerful industries and vested interests, Thailand can pave the way for a sustainable future, contributing to the achievement of SDGs 7 (Energy), 11 (Cities), 13 (Climate), 15 (Biodiversity), and 16 (Peace).
- This discussion on Carbon & Climate, Energy, and Policy & Finance is featured in an article first published on Fulcrum, ISEAS - Yusof Ishak Institute's blogsite.
- Relevant sources for this discussion include GIZ and DCCE (2022) Stakeholder Consultations on Thailand's Emissions Trading Scheme, Watcharapol Supajakwattana (2021) The Role of Private Sector in Thailand's Climate Change Mitigation, Ministry of Energy (2020) Thailand's Climate Change Master Plan 2015 to 2050, and IEA (2021) Thailand's Energy Outlook.
