Authorities are pushing ahead with better carbon data management in industrial estates to increase investment in the Map Ta Phut sandbox, jointly carried out by the World Bank and the Industrial Estate Authority of Thailand (IEAT).
The cooperation promotes efforts to cut carbon dioxide emissions, helping factory operators at the Map Ta Phut Industrial Estate in Rayong transition to clean energy-based businesses.
"The sandbox aims to develop green industry as well as add value to carbon through carbon trading," said Sumet Thangprasert, acting governor of the IEAT.
"This project should help companies save costs in the long term."
Many factories are concerned about the Carbon Border Adjustment Mechanism (CBAM), imposed by the EU to deal with carbon-intensive manufacturing.
Under CBAM, businesses need to use more renewable power to avoid a non-tariff barrier if they export products to countries within the EU.
The transitional phase of CBAM, which started in October 2023, requires importers of certain products to report greenhouse gas emissions embedded in their imports without being subject to financial payments or adjustments.
Importers are scheduled to pay a levy for CBAM certificates from Jan 1, 2026.
According to Mr Sumet, the IEAT will conduct a feasibility study on the adoption of carbon capture technology under the sandbox, while the World Bank will grant green loans to companies that want to invest in green technologies.
National oil and gas conglomerate PTT Plc and Siam Cement Group, Thailand's largest cement maker and industrial conglomerate, are interested in joining the sandbox, said Mr Sumet.
There are 5,300 factories in industrial estates across the country. Their efforts to reduce greenhouse gas emissions or focus more on eco-friendly manufacturing will be an essential part of the government's campaign against global warming.
Former premier Prayut Chan-o-cha announced in 2021 at the 26th UN Climate Change Conference that Thailand would be more aggressive in addressing climate change, striving to reach carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2050, along with a net-zero target, a balance between greenhouse gas emissions and absorption, by 2065.
Mr Sumet said he expects the sandbox to also support the IEAT's industrial land sales. The authority set a target to sell between 8,000 and 10,000 rai in 2025, up from 6,000 rai last year.
More clean energy supply is among the factors that can draw investment.
The government set a target to have investment value in the country make up 27% of GDP by 2026, according to media reports.
