Thailand is to start a new carbon credits market this year to address the sector’s weak demand and low prices. According to Pornanong Budsaratragoon, secretary-general of the Securities and Exchange Commission, the platform would be managed by the Stock Exchange of Thailand, with the goal of leveraging its trading knowledge and expanding the investor base.
“We need a more dynamic carbon credit market,” Ms Pornanong said, emphasising the platform’s importance in achieving success. This initiative complements Thaksin Shinawatra’s recent call for a special trading arena for carbon credits, which will help to revitalise Thailand’s stock market.
Oversupply has hampered domestic commerce, with only 3.5 million tonnes of credits acquired between 2016 and October 2023, compared to 20.5 million tonnes created, according to BloombergNEF. Thailand is capitalising on country-to-country carbon credit trading agreements and, along with Indonesia, Malaysia, and Vietnam, has tremendous potential to meet expanding global demand.
The purpose of the new platform is to position Thailand as a significant player in the growing market for carbon credits by resolving the obstacles that are now being faced. This will allow Thailand to proceed with its economic and environmental goals.
