Thailand’s Cabinet has approved carbon credits and greenhouse gas emission allowances as new underlying assets in the Thailand Futures Exchange (TFEX), marking a significant step in transforming environmental policy into a tradable financial mechanism within the capital market.
The move supports Thailand’s Net Zero goals by preparing the market for low-carbon economy instruments such as Renewable Energy Certificates (RECs) and digital assets. At the same time, the government is advancing the Climate Change Act, which is expected to introduce a mandatory carbon market requiring businesses that exceed emission limits to purchase carbon credits as compensation.
This policy also aligns with the development of Green Finance, including Green Loans and Green Bonds, aimed at attracting international investment and strengthening Thailand’s environmental standards. Businesses are encouraged to begin establishing greenhouse gas accounting systems and adjust production processes to reduce emissions at the source in order to adapt to the emerging low-carbon economy.
Cr. UN Global Compact Network Thailand
