Thailand is one of the signatories to the Paris Agreement, having signed the Paris Agreement on April 22, 2016, and ratified it on September 21, 2016.

Thailand’s NDC aims to a 20% - 25% greenhouse gas emission against Business As Usual by 2030. The NDC focuses on Agriculture, Coastal Zone, Disaster Risk Management, Environment, Health, LULUCF/Forestry, Tourism, Water. The primary target sector is energy, and proposed mitigation actions in the NDC include feed-in tariffs, tax incentives, and access to investment grants/venture capital to promote renewable energy. 

In 2017, the Thai Cabinet endorsed a NDC Roadmap (2021-2030) to support the NDC targets.

• Climate Change Master Plan, 2015-2050
• Power Development Plan, 2015-2036 (PDP2015 as updated by PDP 2018)
• Thailand Smart Grid Development Master Plan, 2015-2036
• Energy Efficiency Plan, 2015-2036 (EEP2015)
• Alternative Energy Development Plan, 2015-2036 (AEDP2015)
• Master Plan for Sustainable Transport System and Mitigation of Climate Change Impacts
• National Industrial Development Master Plan, 2012-2031 
• National Waste Management Master Plan (2016 – 2021) 
• Environmental Quality Management Plan, 2017 – 2021 (EQMP) 
• Montreal Protocol Implementation 
• Thailand Refrigeration and Air Conditioning NAMA (RAC NAMA Project) 

Climate change has also been included in Thailand’s 20-year National Strategy (2017-2036), and the 12th National Economic and Social Development Plan (2017-2021). Under the Thai National Reform Plan, the Thai government will set up an economic instrument that will act as an incentive for the private sector to reduce emissions.

There are no national policies or legislation prohibiting or placing limits upon the use of certain fossil fuels. Generally, Thai policy and legislation focus on incentivizing and providing support for the use of renewable resources and the reduction of GHG emissions.

The main Thai legislation specifically targeting climate change is the Enhancement and Conservation of the National Environmental Quality Act, B.E.2535 (1992) (the “Environmental Quality Act”)

In 2014, the Thailand Greenhouse Gas Management Organization (“TGO”) developed and implemented its initial pilot scheme for the Thailand Voluntary Emission Trading Scheme (“Thailand V-ETS”). The TGO was established under the Ministry of Natural Resources and Environment by the Thai Cabinet’s resolution on May 15, 2007, and is the Designated National Authority responsible for the reduction of GHG emissions under the Clean Development Mechanism.

The Thailand V-ETS encourages the private and public sectors to reduce domestic GHG emissions by setting a GHG emission threshold (‘Cap Settings) for industries with high GHG emissions. The government allocates factories and other organizations GHG emission licenses (‘Allowance Allocations’). Each factory or organization is limited to GHG emissions within the Cap Settings each year and must report the results of emission measurements each year to the authorities. However, if the factory or organization produces less than the Cap Settings, they may collect that difference to carry over to the following year or sell them to other factories or organizations.

The first pilot phase was from 2014 to 2017 and tested the Monitoring, Reporting and Verification System (“MRV”) by involving 15 pilot factories. The Thailand V-ETS has recently completed its second pilot phase (2018-2020), which tested the registry and trading platform. In 2020, the second phase welcomed 15 new pilot factories, as well as the introduction of an MRV system for 3 additional sectors. In 2021, the TGO and the Eastern Economic Corridor Initiative developed a strategic plan for ETS implementation in the Thai Eastern Economic Corridor, which will include key ETS features and a trading platform.

In March 2013, Thailand launched the Thailand Carbon Offsetting Program (T-COP), which is a carbon offsetting program that participants can voluntarily join. Participants include individuals, organizations, goods and services, and events.

Currently, there is no Thai market for trading carbon credits. However, there are Over-the-Counter (OTC) trades taking place, where developers of Clean Development Mechanism projects and countries within Annex I are trading credits through delegates, financial funds and brokers.

The TGO also plans to introduce an emissions trading scheme (ETS) at the national level in the future.

Vehicles in Thailand are subject to a car excise tax, which as of 2016 is calculated based on the C02 emission rate. The purpose of this C02-based excise tax rate is to promote the use and manufacture of low-emission vehicles, such as hybrid cars, eco-cars, electric vehicles (EVs), and cars, which use alternative fuel. Smaller cars may also be eligible for lower excise tax rates.

Under the current excise tax structure, EVs are eligible for excise tax exemptions from January 1 2020 to December 31, 2022. As of February 2021, the Excise Department is still in the process of considering the updated tax structure for EVs, which will aim to respond to the needs of investment in Thailand’s EV industry, and refocus tax collections from CO2 to replace current taxes on gas. The proposed EV tax structure is in the process of being finalized and submitted to the Ministry of Finance.

There are no Thai laws specifically regulating or stipulating subsidies for CCS. However, any leak or release of C02 from CCS that results in damage to persons or property may be subject to the provisions of the Environmental Quality Act as a ‘pollutant’.

The Environmental Quality Act defines ‘pollutants’ as wastes, hazardous materials, and other polluting substances, as well as residue, sediment, or the remainder of such matter, which are discharged from sources of pollution or that naturally occur in the environment, that produce or may produce an impact on environmental quality, or cause poisonous or harmful conditions to the health and hygiene of the population, and includes radiation, heat, light, noise, odor, vibration, and other nuisances emanated or discharged from sources of pollution. Sources of pollution include communities, factories, buildings, structures, vehicles, places of business, and any other thing from which pollutants are created.

As a form of waste produced from certain industrial activities or energy production, CO2 would be included under the definition of pollutants.

Under the Environmental Quality Act, if the leakage or dispersion of pollutants is caused by a source of pollution and subsequently causes damage to a person, the property of an individual, or property of the state, the owner or possessor of such source of pollution shall be liable to pay compensation or damages therefor, whether such leakage or dispersion is caused willfully or negligently. Furthermore, the Environmental Quality Act also stipulates that any person committing an unlawful act or omission by whatever means that results in the destruction, loss or damage to natural resources owned by the state or belonging to the public domain will be liable to pay compensation. As such, if there is any leakage or dispersion of C02 from CCS facilities or any other damage caused by CCS activities, the owner or possessor of the CCS facilities may be required to pay compensation under the Environmental Quality Act.

When a Power Purchase Agreement is made with an energy producer, it may guarantee a Feed-in-Tariff for a fixed period of time. Feed-in-Tariffs are a fixed price for energy sold by energy producers to the Thai Metropolitan Energy Authority (“MEA”) and the Provincial Energy Authorities (“PEA”). Feed-in-Tariffs are available for different types of renewable power production.

Also, the Thailand Board of Investment provides tax and non-tax incentives for producers of renewable energy, manufacturers of equipment, parts or materials related to renewable energy production.

The Energy Efficiency Plan (2015-2036) (“EEP2015”) includes a Building Energy Code, which applies to new buildings or newly modified buildings. The Building Energy Code aims to support the construction of energy-saving buildings. The EEP2015 also promotes the use of LEDs in the built environment, including measures such as lower costs for LEDs.

The Thailand Smart Grid Development Master Plan (2015-2036) provides measures to increase grid resiliency in order to improve energy efficiency by mitigating energy losses when providing or storing power using developments in grid technology and city planning.

The Climate Change Master Plan (2015-2050) (“CCMP2015”) long-term targets for 2020-2050 include increasing the proportion of trips made by public transportation, and the reduction of the proportion of GHG emissions caused by land transport.

As mentioned above, vehicles in Thailand are also subject to a higher excise tax if the car produces a higher amount of CO2, and vehicles which are likely to reduce GHG emissions or are more energy-efficient are subject to lower excise taxes. 

The Thai government is also investing in a new mass public transportation network to improve national infrastructure and to reduce the use of personal vehicles in Thailand, including the introduction of a national and international high-speed rail.

The EEP2015 also targets industry by implementing compulsory energy labeling on equipment and appliances, i.e. High Energy Performance Standard or Minimum Energy Performance Standard (to report low-efficiency equipment). The EEP2015 also promotes the introduction of energy-efficient equipment and greater use of LED in industries, including measures such subsidies, funding, tax incentives, and lower pricing of certain equipment.

Under the EEP2015, the Energy Conservation Promotion Act (“ECPA”), as amended, specifies certain factories and buildings that are required to comply with regulations under the ECPA, that have a high amount of energy usage. The ECPA promotes the adoption of energy conservation measures by specified factories and specified buildings by requiring that they submit an Environmental Impact Assessment or an Environmental and Health Impact Assessment, as the case may be. The Department of Alternative Energy Development and Efficiency produces guidelines to assist industrial operators to comply with these requirements.

The CCMP2015 long-term targets also aim to increase the proportion of investment in low carbon and environmentally-friendly industries.

In 2018, the Thai Ministry of Agriculture and Cooperatives, Ministry of Natural Resources and Environment, and Ministry of Finance are entering into cooperation to support rice farmers in the 5-year “Thai Rice NAMA” project to reduce GHG emissions, specifically the emission of methane from rice production. The Thai Rice NAMA project aims to train farmers on how to use technology in rice production to save resources and lessen GHG emissions. The project also aims to develop a Sustainable Rice Practice standard and a Sustainable Rice Platform. This project is partially supported by The NAMA Facility.

In the same year, Thailand also submitted two NAMAs to the UN to promote energy-efficient low- and middle-income housing, and in promoting energy-efficient government buildings.

The Environmental Quality Management Plan (2017-2021) (“EQMP”) includes measure to increase the protection of national parks and other protected forest areas (including forest parks and botanical gardens) in order to combat Thailand’s GHG emissions. The EQMP also promotes the introduction of more green spaces in the nation’s urban areas.

In addition, TGO supports Low Carbon City Development projects by coordinating with participating municipalities to incorporate low carbon city measures into their plans and providing training to encourage the mitigation of GHG emissions in cities. 

The CCMP2015 long-term targets for 2020-2050 also include the reduction of open burning in agriculture areas.

The AEDP2018 (which amends the AEDP2015) aims to have 33% of Thai electricity generating capacity be generated from renewable energy sources.

Furthermore, in compliance with the AEDP2018, the Power Development Plan (2018-2037) (“PDP2018”) includes fuel diversification through the increase of renewable energy generation and the import of hydropower from neighboring countries. The updated PDP2018 lowers the anticipated emission rate of CO2 from power production under the previous Power Development Plan by over 4 million tons, by factoring in the anticipated reduction of emissions via the Energy For All project for community power plants.

The Ministry of Energy has also developed the Energy Efficiency Development Plan (2011-2030) (“EEDP2011”), which increases energy efficiency, reduce operating costs and reduce GHG emissions.

The Energy Regulatory Commission, one of the main regulatory bodies for electricity production, also promotes the increase of energy efficiency and promotes the use of renewable energy and low-impact energy in the electricity production sector.

There are currently no measures implemented by national financial institutions specifically aimed at reducing the GHG emissions of their customers.

However, the Thai Banker’s Association has published sustainable banking guidelines in August 2019, based on input from organizations like the WWF and the Bank of Thailand (“BOT”). The guidelines cover ‘responsible loaning’, and encourages banks to finance activities and projects which incorporate Environmental, Social and Governance criteria (“ESG”), including those which address climate change and limit GHG emissions.

The BOT also actively promotes sustainable banking and is a participant in the Network for Greening the Financial System, which is a global network for cooperation between banks in order to develop a financial system that supports the environment and society.

Thai commercial banks have implemented measures such as green lending to projects involved in mitigating GHG emissions and renewable energy projects, green bonds, and promoting community development for sustainability projects. Two Thai commercial banks have been named ‘strong performers’ in the WWF’s 2019 ASEAN Sustainable Banking Assessment, based on ESG integration.

Thailand also held the Bangkok Sustainability Banking Forum in 2019 to discuss ESG and sustainable banking, which encouraged financial institutions to implement green lending and other forms of sustainable banking. In February 2020, the BOT and the Association of International Banks (“AIB”) signed a Memorandum of Agreement on sustainable banking guidelines, which highlighted responsible lending with consideration to factors under ESG.

The Thai Administrative court has an Environmental Division which specializes in environmental matters, including the following climate change litigation cases:

Chemical health hazards at Map Tha Phut Industrial Estate
The plaintiffs were villagers who lived around Map Ta Phut Industrial Estate, and the Anti Global Warming Association. The defendants were the National Environmental Board, and the Project Owner of Map Ta Phut. The plaintiffs claimed that the defendants neglected their duties regarding their Constitutional right to maintain natural resources. The Court ordered to temporarily freeze more than 70 chemical industrial projects, and classified each project according to the severity of the environmental impact of each project.
As a result of this case, the National Environmental Board enacted regulation regarding an Environmental Health Impact Assessment (EHIA), which focus more on the impact on health caused by severe projects in which the projects must complete the EHIA before getting licenses for construction or operation.

Public Transportation Emission
The plaintiff was the Anti-Pollution and Environmental Protection Foundation. The defendant was the Bangkok Mass Transit Authority (BMTA). The plaintiffs claimed that the BMTA had been negligent of their duties to control the emission of buses. The Court ordered the BMTA to prepare the investigation of the emission of buses under their supervision, to be carried out every 3 months for the period of 1 year.

Due to the responses above, we believe we have covered the policies, measures and legislation regarding climate change in Thailand.