A post COP 26 assessment of Thailand voluntary emission reduction (T-VER) program | |
| Author | Uratcha Prasithpongchai |
| Call Number | AIT RSPR no.SE-22-03 |
| Subject(s) | Greenhouse gases--Environmental aspects Emissions trading |
| Note | A research study submitted in partial fulfillment of the requirements for the Degree of Master of Science in Sustainable Energy Transition |
| Publisher | Asian Institute of Technology |
| Abstract | As the climate crisis intensifies, global climate commitments become more stringent. It was perceived by many that the responsibility to act on these serious commitments belongs to governments — not much non-state actors can contribute. Nevertheless, COP 26 in 2021 has immensely turned the perspective around. Many big global firms are stepping up, voluntarily making pledges to achieve net zero emissions, and contribute more through the means of carbon offsetting. Thus, creating a flux of credits demand. Thailand is one of the most vulnerable countries to climate change, ranked 9 th by the Global Climate Risk Index 2021. Will it be able to utilize its only carbon offsetting mechanism, the Thailand Voluntary Emission Reduction (T-VER) program to help reach net zero GHG emissions in 2065? This study aims to assess the demand for the program — finding out the buyers, their motivations, preferences, and challenges that hampered the growth of the domestic carbon market. The data of this study is based on a comprehensive review of literature, semi-structured interviews with experts in this field, and an online questionnaire survey with relevant stakeholders. The results from the detailed study on the nature of buyers, their motivations, and preferences, indicate the following: • Thai private companies are the major buyers of the T-VER program. Encouragingly, 56% of the buyers have net zero target covering 2022-2050, even earlier than the country’s target (2065). • The most influential driver, apart from Corporate Social Responsibility (the most common motivation in the voluntary carbon markets), is the management decision — which is in line with the UK, the U.S., and Japan. Additionally, the credit price is what concerned them the most when investing in carbon credits, unlike in the Western countries, where the concern is more about co-benefits and vintages. • The T-VER program was viewed as the credible standard of Thailand and the purchasing trend in 2022 is diverting from cheaper alternative energy to energy efficiency, expected demand for removal projects (forestry and agriculture) is also growing. • Multiple challenges were reported to be equally important. It can be broadly categorized as the lack of regulations and the low awareness of how the market functions. Recommendations to enhance the Thai carbon market include national law enforcement, monetary and fiscal policies, a national trading platform, and strengthening T-VER methodologies. |
| Year | 2022 |
| Type | Research Study Project Report (RSPR) |
| School | School of Environment, Resources, and Development (SERD) |
| Department | Department of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC)) |
| Academic Program/FoS | Sustainable Energy Transition (SE) |
| Chairperson(s) | Kumar, Sivanappan |
| Examination Committee(s) | Dhakal, Shobhakar;Salam, P. Abdul |
| Scholarship Donor(s) | Asian Institute of Technology Scholarship |
| Degree | Research report (M. Sc.) - Asian Institute of Technology, 2022 |