Understand "Carbon Credits in Thailand" in 5 Minutes! A key mechanism for reducing greenhouse gas emissions.

14/07/2025

In today’s world, which is facing a severe climate crisis, urgent action is crucial to address this problem. “Carbon Credits” have emerged as an important tool in reducing greenhouse gas emissions. Particularly in Thailand, the year 2025 marks a critical turning point, as the country accelerates its environmental policies toward achieving Carbon Neutrality by 2050 and Net Zero emissions by 2065.This direction is reflected in increasingly strict environmental regulations, such as the draft Environmental Quality Promotion and Conservation Act, aimed at enhancing environmental management in Thailand.The law focuses on controlling pollution, managing natural resources,and strengthening environmental protection for greater efficiency.

What is a What Is a Foreign Business License

A “Carbon Credit” is a market-based mechanism used as a strategy to reduce greenhouse gas emissions. If an organization successfully lowers its emissions below its normal levels, or enhances its capacity to absorb greenhouse gases beyond the usual, the reduced or absorbed amount is referred to as a Carbon Credit.

The unit used to measure the amount of reduced or captured greenhouse gases is 1 Carbon Credit, equivalent to 1 ton of carbon dioxide (CO₂) or its equivalent. For example, if a reforestation project can absorb 100 tons of CO₂, it will earn 100 Carbon Credits. These credits can then be “sold” to businesses that emit greenhouse gases beyond the allowed limits, enabling those organizations to offset their emissions.

Types and Categories of Carbon Credits

Kasikorn Research CenterIt has been interestingly noted that carbon credits in Thailand can be broadly categorized into two main types :

Carbon Credits earned from projects that reduce or avoid greenhouse gas emissions (Carbon Reduction/Avoidance Projects), such as upgrading machinery, equipment, or energy sources to options that emit fewer greenhouse gases than conventional methods.
Carbon Credits earned from projects that remove and capture greenhouse gases (Carbon Removal Projects), such as afforestation, forest conservation or restoration, BioEnergy with Carbon Capture and Storage (BECCS), Direct Air Carbon Capture (DAC), and Direct Ocean Capture (DOC), among others.

In Thailand, the central authority overseeing this matter is the Thailand Greenhouse Gas Management Organization (Public Organization), or TGO. TGO is responsible for certifying projects, calculating emission reductions, and managing Thailand’s carbon credit market.

Overview of Thailand’sCarbon Credit Policy Direction in 2025

In this article, we will explore the direction of Thailand’s carbon credit policy in 2025, analyze its impact on the business sector, identify opportunities for entrepreneurs, and assess the readiness of Thailand’s support systems for carbon credit implementation.

1. The voluntary carbon credit market is expected to continue expanding significantly.

Currently, Thailand does not have a mandatory carbon market (Cap-and-Trade), but the country actively promotes the voluntary carbon market. In recent years, participation in this market has increased noticeably across various industrial sectors. It is expected that government agencies and key organizations will continue to encourage greater private sector involvement this year, particularly in major industries such as energy, steel, cement, chemicals, as well as tourism and real estate businesses.

2. Government policies are promoting more forestry projects to enter the carbon credit certification system.

According to the 2023 Climate Change Policy Report from the Ministry of Natural Resources and Environment, the government is accelerating the certification of greenhouse gas reduction projects in the agriculture and forestry sectors. Projects such as reforestation, community forest restoration, and organic farming systems are now being promoted and supported to enter the carbon credit certification system. This approach aligns with Thailand’s “Green Economy” strategy, which aims to increase the registration of VCS (Verified Carbon Standard) projects internationally and T-VER (Thailand Voluntary Emission Reduction Program) projects domestically by at least 20% by 2025.

3. Private companies and organizations are actively implementing concrete measures aligned with ESG practices and SDG goals.

Businesses are increasingly preparing ESG (Environment, Social, Governance) reports and carbon emission reports, especially companies listed on the stock exchange. The carbon credit market is becoming a key mechanism for carbon offsetting, while also enhancing the organization’s sustainability image.

Opportunities and Challenges for Thai Businesses

This presents a valuable opportunity for businesses to generate additional income through the sale of carbon credits. Project developers—such as those working on forestry or renewable energy projects—can apply for carbon credit certification with TGO (Thailand Greenhouse Gas Management Organization) and sell those credits to organizations needing to offset their carbon emissions.

Recommendations for Entering the Carbon Credit Market for Interested Businesses

For organizations or communities interested in entering the carbon credit market, it is advisable to start by evaluating which activities or processes can help reduce or capture greenhouse gas emissions—such as adopting renewable energy, implementing reforestation projects, or developing sustainable agriculture. Next, study the certification standards, such as T-VER (Thailand Voluntary Emission Reduction Program) managed by TGO for domestic projects, or VCS (Verified Carbon Standard), an international standard. Carefully review each standard’s criteria, including calculation methods, project duration, and required documentation, to plan your project accordingly and prepare technical data. Consulting environmental and sustainability experts, such as FDI, is recommended to help develop project plans, establish measurement systems, improve processes, and correctly apply for certification. This approach will enhance transparency, traceability, and the market value of your carbon credits, following the guidelines set by the Thailand Greenhouse Gas Management Organization (TGO).

If you are looking for a carbon credit project consultant, we are ready to provide guidance on starting a project or conducting carbon footprint assessments for organizations and products. With deep experience across various industries, our team of energy and environmental experts can assist you from planning to carbon credit registration. Contact us now for an initial consultation.

Our Services

We offer comprehensive consulting services for measuring and assessing the Carbon Footprint of both organizations and products — all in one place.

We provide consulting services for internal training to build awareness and shared understanding of sustainability goals, as well as conducting workshops and offering guidance on data preparation for Carbon Footprint reporting. Our consultants support both organizational and product-level Carbon Footprint assessments — starting from identifying emission sources within your organization, supply chain partners, and stakeholders across the entire value chain, to data collection, analysis, and helping you calculate your Carbon Footprint in compliance with recognized standards.We follow both Thai and international guidelines, including those from TGO (Thailand Greenhouse Gas Management Organization), GHG Protocol, PCAF, and IPCC. เช่น TGO , GHG Protocol , PCAF , IPCC We also assist in registering for Carbon Label certification, officially accredited by TGO, ensuring your greenhouse gas reporting meets transparency and credibility standards.

การประเมินคาร์บอนฟุตพริ้นท์องค์กร (Carbon Footprint for Organization) คืออะไร อ่านต่อ ….

What is Carbon Footprint for Product (CFP)? Read more…

Which Industries or Companies Should Start Assessing Their Organizational and Product Carbon Footprints Now? Start Early to Stay Ahead!

Organizations aiming to export products to countries that require certification for products with reduced greenhouse gas emissions—such as the European Union, which implements the CBAM (Carbon Border Adjustment Mechanism).
Organizations required to submit greenhouse gas emission reports to companies, partners, or stakeholders.
Organizations that need to prepare for listing on the Stock Exchange of Thailand.
Organizations required to prepare sustainability reports.
Organizations that see opportunities in entering the green market and sustainable industries, and seek to improve environmental and social practices to reduce greenhouse gas emissions.