Thailand has implemented a voluntary greenhouse gas reduction program called the Thailand Voluntary Emission Reduction Program, or T-VER, which includesOrganization for Greenhouse Gas Management (OGG) It is the agency responsible for carbon credit registration and certification. As a carbon credit mechanism in the form of a Governmental Crediting Mechanism.

What is carbon credit, carbon credit price in Thailand, importance we need to know

Carbon Credit is the amount of greenhouse gas reduced or sequestered from implementing a greenhouse gas reduction project compared to the normal course of business. It is measured in tons of carbon dioxide equivalent (tCO₂eq). The reduced or sequestered amount must be certified under various standards and can be traded between those who want to offset their carbon emissions and those who have reduced their emissions. 

What is a They come from major projects that can reduce greenhouse gas (GHG) emissions and generate carbon credits that can be traded. Generally, these projects can be divided into two main types: 

1. Projects that reduce greenhouse gas emissions (Emission Reduction Projects)

• Reduction of gas emissions in industry or production processes
  Focus on improving industrial production processes to increase efficiency and reduce greenhouse gas emissions, such as using clean energy, adopting technologies that reduce emissions, treating wastewater and waste, or upgrading machinery to emit fewer gases.
• Changes in the energy sector
  Projects focusing on switching to clean energy or renewable energy, such as installing solar panels or using wind power. 

2. Carbon sequestration projects (Carbon Sequestration Projects)

• Tree planting and forest restoration projects
  These projects involve tree planting with the purpose of absorbing carbon dioxide from the atmosphere, such as reforestation projects, preventing deforestation, or planting trees in areas that have never had forests.
• Wetland restoration and soil management
  Improvement of wetlands or soil management to increase carbon absorption, such as restoring wetlands that previously emitted greenhouse gases or improving agricultural land use to enhance carbon sequestration.

Both types play an important role in reducing the impact of climate change and help organizations achieve their greenhouse gas reduction targets under international agreements more quickly or more effectively. 

The amount of greenhouse gases reduced from normal business operations must be certified and registered according to various standards as carbon credits before the carbon reduction project developers (Supply) can sell them to those who want to offset their carbon emissions (Demand). 

The carbon credit price in Thailand has seen trading activities since 2016 up to the present, with the trading price... You can check and verify the latest information on the website of the Organization for Greenhouse Gas Management (OGG). Carbon credits are a tool used to help reduce the impact of greenhouse gas emissions and play an important role in environmental efforts to achieve the world’s sustainable development goals. 

Why are carbon credits important for reducing greenhouse gas emissions?

Carbon credits are an economic tool used to incentivize the reduction of greenhouse gas emissions and are part of the measures used to address climate change. The use of carbon credits makes emission reductions more efficient by allowing businesses and countries to choose the most appropriate methods to reduce emissions within defined boundaries.

An economic tool to promote sustainable development

Greenhouse gas reduction projects that can be registered under the T-VER program to certify carbon credits must cover the reduction or avoidance of three types of greenhouse gas emissions: CO₂, CH₄, and N₂O, and must fall under the seven main project categories as defined by TGO as follows:

1) Energy efficiency improvement

2) Renewable energy

3) Waste management

4) Management in the transportation sector

5) Forests and green areas

6) Agriculture

7) Others as specified by the Organization of Greenhouse Gas Management (OGG)

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**Selling carbon credits in the Carbon Credit market** 

The Carbon Credit market or carbon credit trading market is defined by the Organization of Greenhouse Gas Management (Public Organization), or OGG, as a medium for buying, selling, and exchanging. Carbon Credit The price of carbon credits is determined by market mechanisms, serving as an incentive to reduce net greenhouse gas emissions. It also compels polluters or greenhouse gas emitters, who incur costs from their emissions, to mitigate or compensate for the impacts on the planet and those affected by climate change.

The mandatory carbon market is therefore an important tool for effectively reducing greenhouse gas emissions and can be divided into two types as follows:

1. Mandatory carbon market

It is established based on legally binding requirements to reduce greenhouse gas emissions, with laws and regulations clearly defining the rules, methods, and details of trading. The government or regulatory agencies oversee and enforce these laws to ensure greenhouse gas emissions do not exceed the set limits (Legally Binding Target). If an entity emits less greenhouse gas than the prescribed limit, it can sell the excess emission reductions to other organizations, known as the Emission Trading Scheme (ETS) or Cap and Trade system. 

 2. Voluntary carbon market

It is created without laws regulating greenhouse gas controls. The market is established through cooperation among businesses or organizations voluntarily participating in buying and selling carbon credits in the voluntary carbon market. Carbon credits from such projects can be sold in the voluntary carbon credit market, and organizations that emit greenhouse gases beyond the set limits can purchase these carbon credits to regain the right to emit greenhouse gases within the permitted amount.

How to buy and sell carbon credits? What should be done? 

The buying and selling of Carbon Credits can be conducted in 2 ways as follows:

1. Trading through official trading platforms or officially established carbon credit exchanges.
2. Buying and selling in a bilateral system (Over-the-counter: OTC) is an agreement directly between the buyer and the seller without going through the market.

Summary of carbon credit prices in Thailand

Since the establishment ofSince starting various projects that reduce greenhouse gas emissions, the amount of carbon credits certified by the Organization of Greenhouse Gas Management (OGG) has shown a continuous increase in registrations each year. 

By Kasikorn Research Center The information provided is interesting: Considering the data on carbon credit trading and prices, the project type with the highest trading volume is biomass projects (41% of total trading volume) because they are easy to implement but yield lower returns than other types, at 36 baht per ton. Notably, carbon credits from forestry projects have an average price as high as 290 baht per ton (and an average of 510 baht per ton in 2024), gaining popularity by accounting for 23% of all credits in 2024. Therefore, choosing the type of carbon credit project is another important factor to consider because the price differences will affect the cash flow received from the project.

FDI experts in environmental and sustainability consulting view that The carbon credit market and prices in Thailand have great potential for growth alongside the global market because Thailand itself has a Net-Zero Emission target by 2065, aligned with many countries worldwide. The main factors come from carbon offsetting by various organizations in sectors such as energy, tourism, finance, event management, and others, all aiming toward sustainability goals as well. 

If you are looking for an environmental and sustainability consultant FDI is ready to provide services and expert advice based on deep experience to be part of driving a green society, promoting environmental and social sustainability, and aiming together towards net-zero greenhouse gas emissions. 

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