28 May 2024

Bangchak Group CEO Advocates Carbon Tax Design Net Zero Path for Thailand “ASEAN Urged to Establish Globally Recognized Regional Carbon Credit Standard.”

Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited, was a guest speaker on the topic of “Carbon Tax–The Critical Path for Thailand Decarbonization,” sharing. He shared insights from the private sector, emphasizing how carbon credits can help drive the achievement of the Net Zero target. Chaiwat joined the panel discussion alongside Dr. Somkiat Tangkitvanich, President of the Thailand Development Research Institute (TDRI), Dr. Ekniti Nitithanprapas, Director General of the Excise Department, and Dr. Chana Poomee, Chief Sustainability Officer, Siam Cement Public Company Limited during the EARTH JUMP 2024 THE EDGE OF ACTION event organized by Kasikornbank at Samyan Mitrtown.

Chaiwat stated that forthcoming tax measures will incur additional costs, and various manufacturing sectors should prioritize efficiency improvement in production and management. This includes integrating green technologies and innovations to reduce carbon emissions. He proposed suggested that the carbon tax revenue should be invested in developing technologies to facilitate achieving the Net Zero target Chaiwat proposed Thailand’s adoption of an Emissions Trading Scheme (ETS) alongside the carbon tax that allows market mechanisms to determine carbon prices. Regionally, ASEAN should develop and promote establishing a globally recognized common carbon credit standard. The common standard will empower the region in negotiating against environmental trade barriers, such as the European Union’s Carbon Border Adjustment Mechanism (CBAM). Furthermore, ASEAN should consider developing the necessary infrastructure for carbon credit trading and introducing capital market instruments to support this endeavor.