Council of State now reviewing regulation
Thailand is gearing up to implement a carbon tax this month as part of a broader strategy to reduce greenhouse gas emissions and enhance environmental sustainability.
Deputy Finance Minister Unveils Details on Carbon Tax
Deputy Finance Minister Paopoom Rojanasakul recently announced details on the upcoming carbon tax during a ceremony to sign a cooperation agreement with PTT Plc and Bangchak Corporation Plc. According to Paopoom, the cabinet approved the ministerial regulation concerning the carbon tax two weeks ago, and it is now under review by the Council of State.
The carbon tax will be integrated into the existing oil tax structure without increasing consumer costs. Moreover, this initiative has gained significant recognition, particularly from the European Union.
Carbon Tax Mechanism and Rates
The carbon tax rate will be set at 200 baht per tonne of carbon dioxide equivalent. This rate will be multiplied by the emission factor specific to each type of oil. Notably, oil producers who manage to reduce emissions below the designated threshold will enjoy a reduction in the carbon tax.
Collaborative Efforts to Boost Awareness
The Excise Department is working closely with the Faculty of Economics at Chulalongkorn University, PTT Oil and Retail Business Plc (OR), and Bangchak Corporation to promote awareness about the carbon tax and sustainable energy consumption. OR will provide operational support, including displaying greenhouse gas reduction information during fuel refills at PTT stations.
This effort aligns with OR’s Sustainable Development Goals (SDG) policy, focusing on a low-carbon society.
Bangchak Corporation and the “Your Tree” Campaign
Bangchak Corporation, known for its Green Miles program, will also participate in the initiative. Members of the Bangchak Green Miles program will see their greenhouse gas reduction efforts reflected as an equivalent number of trees planted, under the “Your Tree” campaign.
Starting March 1, the program will use the Bangchak mobile application to track and record consumers’ eco-friendly fuel usage and environmental impact.
Behavioral Changes and Consumer Education
With each fuel purchase, consumers will receive information about the amount of carbon dioxide (CO2) emissions associated with their fuel choices. This initiative aims to encourage behavioral changes, with the goal of reducing overall CO2 emissions.
International Recognition and Thailand’s Environmental Goals
Incorporating the carbon tax into Thailand’s tax system and promoting sustainable energy consumption comes as part of the country’s broader plan to reduce its carbon footprint and meet international environmental standards.
The European Union’s recognition of Thailand’s effort underscores the global importance of measures such as the carbon tax in tackling climate change.
Conclusion: A Step Towards a Greener Future
The imminent implementation of the carbon tax represents a significant step forward in Thailand’s efforts to combat pollution and promote sustainability. Through collaborative efforts and consumer education, the government seeks to foster a low-carbon society, ensuring a healthier future for generations to come.
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