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Thailand Will Soon Implement Carbon Tax To Curb Emissions

Thailand is poised to introduce a carbon tax this month, aiming to cut greenhouse gas emissions and enhance environmental sustainability.

After the recent signing of a cooperation agreement with PTT Plc and Bangchak Corporation Plc, Deputy Finance Minister Paopoom Rojanasakul discussed the new carbon tax. He noted that the ministerial regulation, approved by the cabinet two weeks earlier, is now under review by the Council of State.

The carbon tax will be integrated into the existing oil tax framework, ensuring it does not impact consumers, and the measure has gained international recognition, particularly from the European Union.

Mr. Paopoom explained that the carbon tax rate is set at 200 baht per ton of carbon dioxide equivalent. This rate is applied based on the emission factor for each type of oil, with provisions for reduced taxes if producers can cut emissions below a certain threshold.

Furthermore, Mr. Paopoom mentioned that the Excise Department is collaborating with Chulalongkorn University’s Faculty of Economics, PTT Oil and Retail Business Plc (OR), and Bangchak Corporation to promote the carbon tax and sustainable energy use on several fronts, aiming to shift towards lower carbon emissions.

OR has agreed to provide operational support and resources as part of this tripartite agreement. They will display the amounts of reduced greenhouse gases during fuel refills on screens at PTT stations.

This effort is part of OR’s commitment to the Sustainable Development Goals (SDG), with a special focus on the “G: Green” goal, which prioritizes fostering a cleaner society and supporting a transition to a low-carbon future.

For Bangchak, participants in the Bangchak Green Miles program will be able to see their contributions to greenhouse gas reduction translated into the number of trees planted, thanks to the “Your Tree” campaign.

This information will be accessible through the Bangchak mobile app, linking eco-friendly fuel consumption with tangible environmental conservation efforts. The campaign will begin its communications on March 1.

Mr. Paopoom also highlighted that at each fuel refill, consumers will receive data on the carbon dioxide (CO2) emissions associated with their purchase, encouraging them to consider how they can reduce their CO2 footprint.