News

Thailand's carbon market is still in its early stages, with its Securities and Exchange Commission estimating that the voluntary carbon market (VCM) will be launched by 2027, ahead of the mandatory market.

Thailand, which has been suffering from high electricity prices, faced a setback when the Energy Regulatory Commission (ERC) proposal to reduce renewable energy investments was rejected.

To increase public awareness of the carbon tax, the Thai government has teamed up with Chulalongkorn University and two major oil companies.

To encourage businesses to use renewable energy, Thailand has officially launched the Utility Green Tariff (UGT), setting the rate at 4.21 THB per kWh (about 0.12 USD), slightly higher than the current rate for conventional electricity.

Thailand’s cabinet approves a carbon tax rate of 200 baht ($5.88) per ton of carbon emissions. Deputy Finance Minister Paopoom Rojanasakul stated in an official announcement that the carbon tax will be integrated into the existing petroleum tax structure.

The de facto leader of the ruling Pheu Thai Party, former Prime Minister Thaksin Shinawatra, recently raised the topic of lowering electricity rates, sparking widespread discussion. Most of the proposals are related to renewable energy.

As the new year begins, Thailand's newly adopted electricity prices remain high, averaging 4.15 Thai Baht per kilowatt-hour (about USD 0.12). Although this marks a slight reduction compared to 2024, the price remains above 4 Baht.

Recently, Thailand amended tax laws to encourage mangrove restoration, with plans to exempt land taxes on green area, such as mangrove forests, starting in 2025.

To expand the development of electric vehicles (EVs), the Thai government has passed a new tax system aimed at hybrid electric vehicles (HEVs) and mild hybrid electric vehicles (MHEVs), offering conditional excise tax reductions for manufacturers.

To achieve its carbon reduction targets, Thailand is formulating five major energy plans with a total investment of 2.9 trillion baht (about 93 billion USD). Over 50% of this budget will be allocated to renewable and alternative energy.