Cabinet approves carbon credits for TFEX derivatives trading

On February 10, 2026, Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said after the cabinet meeting that ministers approved the Finance Ministry’s proposal to expand the list of reference assets under the Futures Trading Act B.E. 2546 (2003), under the supervision of the Securities and Exchange Commission (SEC).

The key change is to allow carbon credits to be used as reference assets in the Thailand Futures Exchange (TFEX), or derivatives market. The move is described as upgrading Thailand’s financial infrastructure in line with global trends and preparing the country to fully support the green economy.

The approval also includes adding greenhouse gas emissions allowances (allowances) and renewable energy certificates (RECs) as reference assets. This is intended to give businesses tools to manage price risk and plan environmental costs more effectively, in line with national goals to achieve carbon neutrality and net-zero greenhouse gas emissions by 2050.

Ekniti said Thailand’s carbon trading market is not yet large and prices remain significantly lower than global markets because the system is still voluntary. However, the government is looking ahead to prepare for enforcement of the Climate Change Act, also referred to as the “global warming reduction” bill, which has already been approved in principle.

He said the law would introduce a mandatory pricing system and set caps on greenhouse gas emissions. Businesses that exceed the limits would be required to buy carbon credits to offset excess emissions. Such a mechanism would increase demand and lead to prices that better reflect real conditions.

Ekniti added that global derivatives markets are no longer limited to traditional products, but have expanded to new assets that reflect the real economy and emerging risks—from carbon to digital assets. As Thailand moves towards a low-carbon economy and a digital economy, having risk-management tools and products that match new opportunities is part of the financial infrastructure needed for Thailand to remain competitive and grow sustainably.

“The Finance Ministry and the SEC share the same view, which is why we proposed this for cabinet approval,” he said. “It is about strengthening Thailand’s derivatives market to move in step with modern investment, balancing financial innovation with investor protection, so TFEX can support the transition to a green economy and a digital economy in a stable and sustainable way.”

Beyond the environmental dimension, the cabinet’s decision also covers approval for digital assets—both cryptocurrencies and digital tokens—to be used as reference assets in the derivatives market, to ensure regulation keeps pace with new types of financial risk. The decision also includes updating other reference indices, such as exchange rates and interest rates, to better reflect real market conditions.