Thailand draws up historic first climate change bill

Thailand’s first climate change bill is expected to be submitted to parliament by the end of this year, with the establishment of a national climate fund as a central mechanism to support the country’s transition from a fossil-fuel economy to a low-carbon society, according to the Department of Climate Change and Environment.

Phirun Saiyasitpanich, director-general of the department, announced the progress on Tuesday during an event marking the department’s second anniversary.

He said the bill has been submitted to the Secretariat of the Cabinet and is now under review by the Office of the Council of State, which has appointed a working group to examine its 205 articles in detail.

Once the review is complete, the draft will return to the cabinet for approval before being forwarded to parliament later this year.

“We expect to have a climate law in place by next year. It will be a vital instrument for managing carbon emissions and ensuring that Thailand can meet its international commitments of achieving carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065,” Mr Phirun said.

“The financial mechanisms included in the law will be crucial in moving us towards a climate-friendly society.”

The draft legislation also requires more than 4,000 companies to report their carbon footprints to the department, creating the foundation for a comprehensive national emissions database.

A key feature of the bill is the gradual implementation of an Emission Trading Scheme (ETS), expected to launch with large corporations by 2031.

The ETS, already in use worldwide, sets a cap on total emissions while allowing companies to buy and sell allowances, creating financial incentives to reduce carbon output.

The government plans to introduce the scheme first in the energy and industrial sectors.

Another cornerstone of the bill is the creation of a climate change fund, he said.

The government will allocate 200 million baht to the fund during its first two years, after which it is expected to sustain itself through revenues from the ETS, carbon credit fees, penalties, and international contributions.

The fund will primarily provide low-interest financing for clean technology investments and emission-reduction projects.

Mr Phirun stressed that the trading system will be designed to prevent “greenwashing”, with transparent data collection and strict monitoring to ensure credibility.

“This law will give us the tools to move forward with real action, not just promises,” he said.

It ensures that Thailand’s carbon reduction efforts are backed by accountability, financial support, and strong oversight,” Mr Phirun added.

Source – Bangkok News