Thailand is advancing the Draft Climate Change Act, commonly referred to as the “Climate Change Act”, which will be the country’s first national legislation establishing a comprehensive framework for managing and reducing greenhouse gas (GHG) emissions. This Act represents a pivotal step toward Thailand’s Net Zero Emission goal by 2050, creating legal mechanisms to drive sustainable transformation across all sectors.
Key Objectives of the Climate Change Act
The proposed legislation serves four main purposes:
1. Achieve Thailand’s Net Zero Target Establish legal and institutional frameworks to drive Thailand toward carbon neutrality by 2050 and Net Zero greenhouse gas emissions by 2065.
2. Fulfill International Commitments Ensure compliance with the Paris Agreement, to which Thailand is a signatory, by implementing concrete measures to reduce national GHG emissions.
3. Enhance Climate Adaptation Capacity Develop national and sectoral adaptation plans, particularly for agriculture, water management, and public health, to strengthen resilience against climate impacts such as droughts, floods, and extreme weather.
4. Strengthen Business Competitiveness Introduce market-based mechanisms, such as carbon trading systems, to encourage emission reductions while helping Thai businesses mitigate the impact of carbon-related trade barriers (e.g., the EU’s Carbon Border Adjustment Mechanism – CBAM).
How Will It Be Enforced of Climate Change Act?
The Climate Change Act will employ both economic and regulatory mechanisms to ensure private-sector participation in emission reduction. Key enforcement measures include:
· Mandatory GHG Reporting: Designated businesses must regularly report their greenhouse gas emissions to government authorities.
· Emission Trading System (ETS): The government will establish a cap-and-trade framework setting emission quotas for large industrial operators. Companies that emit beyond their cap will be required to purchase carbon allowances on the market.
· Climate Fund: A national fund will be created to support green investment through financial incentives such as tax benefits, low-interest loans, and grants for businesses adopting clean technologies or carbon-reduction innovations.
The Conclusion of Thailand Climate Change Act Now and Next
The Climate Change Act marks a major policy milestone in Thailand’s path toward environmental sustainability. By elevating climate action from voluntary efforts to legally binding obligations, this law will reshape the way businesses operate — from carbon measurement and disclosure to strategic investment in green technology.
For the private sector, this is not merely a compliance issue, but a strategic opportunity to enhance competitiveness, reduce carbon costs, and position Thailand as a leader in low-carbon and sustainable growth within the global economy.
