Thailand needs to quickly adopt and implement international agreements on reducing carbon emissions to prevent adverse effects on the country's exports and investments, warns caretaker Finance Minister Pichai Chunhavajira.
In his keynote speech, delivered at the "ESG Forum: Time for Action" organised by Prachachart Turakit newspaper, Mr Pichai said Thailand has only six years left to adopt and implement international pacts on cutting carbon emissions, as stipulated by international accords.
The country is committed to reducing carbon emissions by 30% by 2030 and achieving carbon neutrality by 2050, with a goal of reaching net zero by 2060.
"If Thailand remains idle and does not take any action, the country will eventually be unable to compete with others," he said.
"Thai products could face tariff measures to protect the environment from importing countries, which could also affect domestic investment and the financial sector."
According to Mr Pichai, Thailand emits about 370 million tonnes of carbon annually. To achieve a 30% reduction, emissions would need to be cut by about 120 million tonnes per year.
The sector producing the most emissions is energy, which includes electricity generation and oil, accounting for 70% of total emissions. Another 15% comes from agricultural production processes and 15% from industrial production processes.
If Thailand uses hydropower from dams in the country and neighbouring countries to generate electricity, it could help reduce carbon emissions by 15 million tonnes.
Developing solar power could reduce emissions by another 5 million tonnes, he said.
However, this still leaves a shortfall of 100 million tonnes.
Mr Pichai said if Thailand successfully improves rice cultivation processes, such as by reducing water usage, it could help cut emissions by about 10 to 20 million tonnes.
Rice cultivation normally requires water to be maintained for the plants every 15 days. However, if this could be extended to 30 days, it would reduce spoilage and decrease methane emissions.
He said carbon can be traded on the international market. In Europe, carbon is traded at nearly US$100 per tonne, but the current trading price is only $2 per tonne in Thailand.
In Singapore, the carbon trading price is $34 per tonne.
Mr Pichai said Thailand is preparing to develop a new platform for trading carbon credits.
