An initiative to develop a carbon credit market in Asean is taking shape as energy conglomerate Bangchak Corp has teamed up with Bursa Malaysia -- Malaysia's stock exchange -- to push ahead with the project.
Bangchak is keen to set up a regional carbon credit trading standard after it established Carbon Markets Club in 2021 to promote carbon credit trade in Thailand. The club has around 1,000 members, comprising both individuals and companies.
Thailand and Malaysia have agreed to hold discussions with other Asean states to develop the Asean Common Carbon Framework (ACCF) to achieve this purpose, said Gloyta Nathalang, Bangchak's senior executive vice-president for sustainability management and corporate communications.
Mrs Gloyta was speaking after participating in the 2024 Malaysia Carbon Market Forum, during which she shared her experiences as the chairwoman of Thailand's Carbon Markets Club in a session titled "Creating a High Integrity Asean Carbon Market".
"This session focused on the development of a high-quality carbon credit market within Asean and discussed the potential of the ACCF to implement the region's carbon neutrality strategy," she said.
Like other countries in the region, Thailand is committed to efforts to decelerate the rise in temperature globally.
Thailand has stated it intends to reach carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2050.
Carbon credit trade is an economic incentive helping businesses to reduce their carbon dioxide emissions.
The trade relates to the degree that carbon dioxide emissions are reduced by conducting environmental projects, including clean energy development.
The credits generated can be sold to companies to offset their carbon dioxide emissions.
The ACCF aims to increase carbon credit trading among Asean states, leading to a regional carbon trading standard that could provide an alternative to the existing European Gold Standard, which incurs costly expenses for trade.
Mrs Gloyta said the initial step for the ACCF is to encourage Asean nations to join hands to develop a carbon credit market.
In Thailand, carbon credit trade is certified by the Thailand Voluntary Emission Reduction Program, initiated in 2014 by the Thailand Greenhouse Gas Management Organization, a public entity established to encourage both government agencies and companies to reduce their greenhouse gas emissions voluntarily.
