Thailand approves landmark Climate Change Bill with carbon tax and ETS

Thailand approves a landmark Climate Change Bill introducing carbon taxes and an ETS. (Photo: iStock)

Thailand on Tuesday approved its Climate Change Bill, a landmark measure that would introduce carbon taxes, establish an emissions trading system (ETS), and create a national climate-policy body.

The ETS still has no set launch date and will require further parliamentary approval, according to proposals endorsed by the cabinet.

Inside Thailand’s new climate legislation

Deputy government spokeswoman Lalida Persvivatana said the bill will serve as Thailand’s overarching climate law. Once enacted, it will establish a comprehensive framework for managing greenhouse gas (GHG) emissions.

The bill contains six key components:

1. Carbon taxes on fuels and products

An organic law will be introduced to enable tax collection. An earlier draft indicated that more than 30 fuels and products, such as gasoline, diesel, and liquefied natural gas, would be subject to a domestic carbon tax. Maximum proposed levies range from USD 3.13 (THB 100) per liter of kerosene to USD 2.5 (THB 80) per kilogram of LNG, though final rates are still undecided.