Tuesday, September 21, 2021

business

FTI- DENSO-CEP signing of a letter of intent to cooperate on a pilot project on renewable energy trading


The DENSO Group, a global automotive components manufacturer, has expressed their goal to reach 100% of renewable energy usage by “2035”

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Signed on Wednesday the 25th August 2021, a letter of intent will be signed between The Federation of Thai Industries (FTI), the “DENSO group”, and the clean energy for people foundation (CEP) concerning a pilot project regarding energy trading. Each party’s representatives are to include Dr. Suvit Toraninpanich, the Chairman of FTI’s greenhouse gas reduction working group, Mr. Natee Sithiprasasana, Vice Chairman of the CEP foundation and four DENSO group representatives.

The pilot project will focus on the trading of renewable energy to support current business trends and is to be available in select areas between 2022- 2025, or later if deemed appropriate. It aims to act as a showcase to encourage the restructuring for the energy administration of Thailand along with the energy reform plan and adapt appropriately to newer regulations from the global community, such as the European green deal’s “Carbon Border Adjustment Mechanism (CBAM)”.

This LOI is dependent on the cooperation of all three entities, where to promote and support greenhouse gas reductions, the FTI has formed the Greenhouse Gas Reduction Working Group, responsible for co-operating with the Energy Regulatory Committee(ERC) to push the pilot project, whereas DENSO will focus a feasibility study to test their readiness for participation of the said project, and the CEP is to provide an initial consultations on the restrictions regarding the project. As such, the CEP aims to promote, educate the public, as well as encourage community-government relations.

The FTI’s Greenhouse gas reduction group will also additionally push for a greenhouse gas emissions trading market for parties with a desire to sell or offset the generated carbon within their business activities, where a digital trading platform is required and is set to be registered with relevant agencies such as the Thai Greenhouse Gas Management Organization (TGO).

Khun Kawin Thangsupanich, Secretary to the Ministry of Energy attended the event as a witness to give his congratulations to the working group, promoting and supporting the FTI’s greenhouse gas reduction group,the DENSO Group and the Clean Energy for People Foundation for their intention to cooperate in the electricity trading pilot projects using renewable energy and green carbon to prepare for future greenhouse gas mechanisms. He also mentions

The current situation regarding global warming in Thailand where under the Paris agreement Thailand’s Nationally Determined Contribution – NDC during the years 2021-2030, are set at 20-25% under normal conditions.

The DENSO group,a global automotive components manufacturer, has expressed their goal to reach 100% of renewable energy usage by “2035” and has pledged to support the reduction of carbon emissions from both within the group and outside the group, through carbon emissions trading.

Published : August 27, 2021