Thailand to introduce a new market for carbon credits

Thailand is gearing up to launch a new carbon credits market in a bid to remedy the lackluster demand and low prices that have plagued its domestic trade. The country aims to revitalize the carbon credit market, as stated by Pornanong Budsaratragoon, the secretary-general of Thailand’s Securities and Exchange Commission. Budsaratragoon emphasized the need for a more dynamic carbon credits market, pointing out that the Stock Exchange of Thailand is poised to contribute its trading expertise and attract a broader base of investors to facilitate the success of the market.

A recent report from BloombergNEF highlighted the challenges Thailand faces in its carbon offset trade. Oversupply in the market has led to subdued prices, with only 3.5 million tons of credits being purchased between 2016 and October of the previous year, compared to the generation of approximately 20.5 million tons of credits during the same timeframe. Despite these obstacles, Thailand has engaged in some international trading of credits and has struck agreements for inter-country credit transactions, following the lead of other Southeast Asian nations like Indonesia, Malaysia, and Vietnam.

In Malaysia, the Ministry of Agriculture and Food Security (KPKM) has outlined two key areas of focus for the year, centering on the reform of the national rice and paddy industry and enhancing productivity in the ruminant sector, with a particular emphasis on beef and buffalo meat production. Meanwhile, Foxconn’s subsidiary, Fu Wing Interconnect Technology, has doubled its investment in Vietnam’s Nghe An province to $200 million, injecting a substantial sum into the central region’s economy.

The World Bank is optimistic about Vietnam’s economic outlook, revising its GDP growth forecast for 2025 upwards to 6.6% in its latest “Global Economic Prospects” report. This positive projection bodes well for the country’s economic trajectory in the coming year. Additionally, Poland’s prominent pharmaceutical group, Adamed, is eyeing expansion opportunities in Vietnam, signaling its interest in further investment in the Southeast Asian nation.

With these developments in various sectors across Southeast Asia, including Thailand’s upcoming carbon credits market, Malaysia’s strategic focus on food security, Vietnam’s economic growth prospects, and foreign investments in the region, the landscape of Southeast Asia’s economy is poised for dynamic and positive changes in the near future.