The Thailand's new law employs diverse economic instruments to meet climate change mitigation targets

Thailand is making strides in fulfilling its Paris Agreement commitments with the advancement of the Climate Change Bill. This legislation sets ambitious targets, aiming for a 30% to 40% reduction in greenhouse gas (GHG) emissions by 2030 and a trajectory towards carbon neutrality by 2050, with a goal of achieving net zero emissions by 2065.

At its core, the Draft Law represents a comprehensive strategy to mitigate the increasingly severe impacts of climate change. It introduces a suite of mechanisms, including economic instruments such as carbon credits, carbon tax, and a domestic emissions trading system (ETS), to incentivize emissions reduction across all sectors of the economy.

Central to the Bill is the establishment of a robust reporting framework. Private sector entities will be mandated to submit detailed data on their greenhouse gas emissions, fostering transparency and accountability. Stringent penalties for non-compliance underscore the government's commitment to enforcing climate action.

Moreover, the Draft Law aims to foster innovation and investment in decarbonization technologies through the Climate Change Fund, providing vital support for businesses transitioning towards cleaner, more sustainable practices.

The legislation also outlines specific roles and obligations for business operators. Mandates for GHG data collection and reporting, along with participation in the ETS, ensure broad industry engagement in emissions reduction efforts.

Overall, the Climate Change Bill represents a significant milestone in Thailand's commitment to combatting climate change. Its detailed provisions and ambitious targets signal a clear dedication from the government to tackle this global challenge head-on, paving the way for a greener, more resilient future. As Thailand prepares to enforce this new law, businesses must prioritize compliance to not only meet regulatory requirements but also contribute to sustainable growth and environmental stewardship./.

Ngoc Huyen (Bangkok Post, Nation Thailand)