What does your organisation do within the carbon markets?

Our organization, Thailand Greenhouse Gas Management Organization (TGO: Public Organization) is the Designated National Authority (DNA) for Thai CDM projects and is responsible for the review and issuance of Letters of Approval (LoA) and monitoring CDM projects. TGO is divided into five different sectors including: policy and planning; investment and marketing; capacity building and outreach centre; project review and monitoring; and GHG information center.
TGO is an implementing agency on greenhouse gas emission (GHG) reduction in Thailand and one of its objectives is to be the National Information Clearing House of Greenhouse Gas, promoting the public outreach regarding GHG. TGO is also responsible for promoting CDM projects and the CER market as well as managing all information regarding the approved CDM projects and CER value. In addition, TGO enhances the capacity building of the government and private sectors on GHG management; and supports all activities related to climate change mitigation measures.

How important is the development of the carbon markets in Thailand?

A carbon market has not yet been established in Thailand. Nevertheless, TGO encourages the sales of CERs from CDM projects as well as the sales of VERs. TGO is also currently in the process of studying about the feasibility of establishing either a voluntary or compliance carbon market in Thailand.

What do you think are the most exciting developments in this area at the moment?

Thailand’s short term plan (in 1-4 years) for the carbon market involves the Ministry of Finance and TGO creating incentives for project developers of CDM projects in Thailand. This will be accomplished through the establishment of a “Thailand Carbon Fund”, which is currently in process of development. Thailand is also in the process of establishing a voluntary carbon market, in parallel with a compliance market.

At present, establishing a voluntary market for projects in the forestry sector is of importance to Thailand. Since we do not yet have a carbon market in Thailand, one of the biggest challenges CDM project developers are facing is the current low price of carbon credits on the compliance market. This in turn is dissuading project developers to invest in CDM projects in developing countries because the investment costs are high and the return on investment is low. This decrease in interest of investing in CDM projects affects developing countries such as Thailand.

What is the biggest challenge facing the Thailand's carbon markets in the long term (5-10 years)?

With regards to the long term, Thailand expects to develop and promote a Thai Emissions Trading Scheme (ETS) and also establish T-VERS, to be sold on the Thai voluntary market.