Thailand’s Excise Department has announced plans to introduce a carbon tax on the energy, transport, and industrial sectors. The aim is to help Thailand achieve carbon neutrality by 2050 and net zero greenhouse gas emissions by 2063. The carbon tax will also encourage companies to shift towards cleaner or renewable energy, and could reduce CO2 emissions by up to 30%. The tax study is currently underway and will be completed this year.
The energy sector is currently the largest contributor to CO2 emissions in Thailand, followed by the transport and industrial sectors. The introduction of the carbon tax is expected to help reduce the cost of imported fuel and avoid the rising costs associated with the EU’s carbon border adjustment mechanism. In addition to the carbon tax, Thailand is also promoting the use of electric vehicles and renewable energy sources to help meet its environmental goals.
Currently, the energy sector accounts for 35% of Thailand’s CO2 emissions through the burning of oil, natural gas, and coal. The transport sector accounts for 32% of CO2 emissions, while the industrial sector accounts for 27%.
