Carbon credit trading in 2021 doubles from previous year
The trend of reducing greenhouse gas emission that is growing among industrial nations worldwide has doubled the value of carbon credit trading in 2021 from the previous year to nearly $750 million, said Kiatchai Maitreewong, director of Thailand Greenhouse Gas Management Organization (TGO).
He said during an online seminar “Virtual Forum Go Green” hosted by Krungthep Turakji newspaper on Thursday.
“Under the Emissions Trading System (ETS) of the Paris Agreement, countries can trade in the international carbon credit market to cover their shortfall in assigned amount units,” said Kiatchai. “Countries with surplus units can sell them to countries that are exceeding their emission targets.”
“As the need of carbon credit is rising, the value of carbon credit trading in the first eight months of 2021 has amounted to $748 million, doubling the trading value during the same period last year,” he said. “The price of carbon credit also rose to $3 per tonne from 2.5 per tonne in the previous year, while the total trade volume is expected to reach 240 million tonnes this year.
Kiatchai added that many organizations worldwide are becoming more engaged in net zero and carbon neutrality policies (reducing the emission of greenhouse gases and carbon to zero) to promote their corporate image and comply to requirements of international trade partners.
“In 2016 Thailand joined the Paris Agreement which aims to keep the rise in mean global temperature to well below 2 degrees Celsius, and preferably limit the increase to 1.5 degree Celsius to reduce the impacts of climate change,” he added. “In order to achieve this goal, it is estimated that the world need to reduce its carbon emission to less than 400 billion tonnes per year.”
Kiatchai further added that Thailand sets a target to reduce 20-25 per cent of carbon emission by 2030 or by 111-139 million tonnes, and aims to become a carbon neutral nation by 2065 to 2070. “It is vital that Thailand follow the framework of Paris Agreement or risk being boycotted by trade partners,” he said. “The government must also urge businesses to reduce carbon emission using the laws and tax measures, while companies must employ the ESG (Environmental, Social, and Governance) principle in their business operation.”
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