Highlights

• Thailand introduces carbon tax collection and carbon credit trading through the Climate Change Bill.
• A National Climate Change Policy Committee will be formed, and a climate fund will manage GHG emissions.
• Companies falsifying GHG emission reports face penalties under Thailand’s new climate legislation.

Thailand’s Cabinet has approved the Climate Change Bill, which introduces measures for carbon tax collection, carbon credit trading, and the creation of a National Climate Change Policy Committee.

The object of the bill is to manage greenhouse gas (GHG) emissions and guide the country to carbon neutrality by 2050 and net-zero GHG emissions by 2065, as well as align with the United Nations Framework Convention on Climate Change (UNFCCC).

Read More: Carbon Tax Dropped from Indonesia’s 2026 Budget as Focus Shifts to Trading

National Climate Change Policy Committee and Climate Fund

The bill forms a National Climate Change Policy Committee tasked with defining GHG emission targets and representing Thailand in international climate matters.

In addition to this, a climate fund will operate as a state legal entity, using carbon credit mechanisms to support investments in projects that reduce emissions and adapt industries to environmental changes.

Emissions Tracking, Trading System, and Carbon Taxes

The legislation mandates the development of a GHG emissions database and operational plans to reduce emissions, alongside a national adaptation plan for all government agencies.

An Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM) pricing will be introduced, recognising carbon credits as transferable assets.

Also Read: Malaysia’s Energy Transition: 2026 Budget and Carbon Tax Explained

Also, the bill establishes carbon taxes on specific commodities, collected by the Excise and Customs Departments, to regulate emissions from industrial and commercial activities.

Industry Classification and Compliance Measures

The bill defines a standard for classifying economic sectors based on climate and environmental impact, creating a taxonomy for use in policymaking, investment, and green fund allocation.

Companies and organisations found falsifying GHG emission reports will face penalties. These measures create a structured framework for emissions control, trading, taxation, and compliance in Thailand’s transition towards lower carbon outputs.

Takeaway

All in all, the Natural Resources and Environment Ministry will draft the organic law to implement the bill and consult important agencies on ETS and CBAM operations.

See Also: Debates Galore: Singapore’s Carbon Tax Concessions to Oil Giants

The Climate Change Bill will set up a comprehensive framework for GHG management, carbon taxation, and carbon credit trading, as well as firm up Thailand’s long-term commitment to environmental sustainability and international climate obligations.

###

Are you searching to connect with sustainable finance experts to grow your business?

Please take a look at our ESG solutions page, which offers a broad range of sustainability financial services.

Or, if you are a sustainability provider looking to get listed on our ESG solutions page, please click here.

Follow KnowESG’s Sustainable Finance & Technology News for regular updates and insights.

Source: The Nation Thailand