TGO Announces the Achievements in Elevating Thailand’s “Carbon Credits” to International Standards

The Thailand Greenhouse Gas Management Organization (Public Organization), or TGO, is an agency under the supervision of the Minister of Natural Resources and Environment. TGO provides technical services and sets standards related to greenhouse gas measurement, reporting, and verification (MRV), and serves as Thailand’s GHG certifying body, responsible for certifying GHG emissions, reductions/removals, and offsets. TGO also promotes the development of greenhouse gas mitigation projects and the certified carbon credit market. It operates as a central platform for information on greenhouse gas management, enhances the capacity of public and private entities, provides technical guidance, and supports climate action measures and outreach activities.

On 27 November 2025, TGO hosted the 1st Performance Announcement as part of its Press Relations Activities for FY2026, themed “Achievements in Elevating Thailand’s Carbon Credits to International Standards.” The event highlighted TGO’s major milestones in Q1/2026 and was presided over by Mr. Nakorn Tangavirapat, Executive Director of TGO, and Dr. Natarika Wayuparb Nitiphon, Deputy Executive Director of TGO, who welcomed press representatives from various sectors at The Sukosol Hotel, Bangkok.

TGO announced the following achievements and highlights:

• ICAO’s approval of Premium T-VER for use in offsetting greenhouse gas emissions from airlines operating international flights under the CORSIA scheme

The International Civil Aviation Organization (ICAO) has officially approved Thailand’s Premium Thailand Voluntary Emission Reduction Program (Premium T-VER) as an eligible standard whose carbon credits may be used by airlines to offset international flight emissions under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), Phase 1 (2024–2026). Under ICAO’s eligibility criteria, Premium T-VER credits must have started their first crediting period on or after 1 January 2016 and achieved GHG reductions between 1 January 2021 and 31 December 2026. Project developers are required to obtain a Letter of Authorization for international use from the Department of Climate Change and Environment. Thailand will apply corresponding adjustments and report the authorized use of carbon credits generated from domestic emission reduction programs for offsetting emissions from international flights in its Biennial Transparency Report (BTR) to affirm transparency and accountability to the global community.

Eleven project types are eligible for CORSIA, including:

1. Renewable electricity generation for grid supply
2. Renewable electricity for self-consumption and/or direct supply
3. Biomass-based combined heat and power for commercial supply
4. Conversion from internal combustion engine vehicles to electric vehicles
5. Municipal solid waste management as an alternative to landfilling
6. Methane capture from anaerobic wastewater treatment for utilization or flaring
7. Afforestation activities (excluding wetland areas)
8. Mangrove planting
9. Mangrove and seagrass restoration
10. Improved forest management
11. Sustainable agricultural land management

The International Air Transport Association (IATA) estimates that airlines will require approximately 146–236 million metric tons of carbon dioxide equivalent (MtCO2eq) of carbon credits for CORSIA Phase 1 over the three-year period. At present, only one standard—Architecture for REDD+ Transactions (ART), from a national program in Guyana—has issued credits currently available on the market, amounting to around 4.64 MtCO2eq. More recently, small volumes of biomass projects approximately 1.5 MtCO2eq and cookstove projects around 0.18 MtCO2eq under the Gold Standard scheme have begun to enter the market. This has resulted in a significantly constrained supply, contrasted with strong and rising demand. Futures contract data from the Intercontinental Exchange (ICE) in the United States indicate prices in the range of USD 15–21 per tCO2eq.

In July 2024, the Airlines Association of Thailand engaged with TGO and submitted plans for the purchase of carbon credits for CORSIA Phase 1 from five airlines operating in Thailand. Their combined projected demand over the three-year period exceeds 400,000 tCO2eq. This represents a significant opportunity for Thailand: if these airlines are able to purchase Premium T-VER credits domestically, it could prevent an outflow of approximately USD 6–8.4 million (based on futures market prices), equivalent to around THB 192–268.8 million (at an exchange rate of USD 1 = THB 32).

• World’s first transfer of Article 6.2 carbon credits under the Thailand–Japan bilateral cooperation through the Joint Crediting Mechanism (JCM)

Since 2015, the Thai Cabinet has approved bilateral cooperation between Thailand and Japan to develop the Joint Crediting Mechanism (JCM), with the aim of strengthening a low-carbon growth partnership between the two countries. The year 2025 marks the tenth year of this cooperation. During this period, Thailand successfully completed the transfer of carbon credits from a JCM project to Japan — the first such transfer among the 31 JCM partner countries under Article 6.2 of the Paris Agreement. Under this cooperation, Japan provides financial support for the deployment of greenhouse gas-reducing technologies in Thailand, while both countries share the resulting carbon credits according to mutually agreed proportions. These credits may be used toward achieving each country’s nationally determined contribution (NDC) or for other authorized international use. The first carbon credit transfer, completed in November 2025, was from the project “Introduction of a 5MW Floating Solar Power System on an Industrial Water Reservoir in Thailand.” The project was developed by TSB Bangkok Co., Ltd. of Thailand in collaboration with TSB GreeNex Co., Ltd. of Japan, and involves the installation of a 5-megawatt floating solar power system on a water reservoir in the Kabinburi Industrial Estate in Prachinburi Province. The transfer was carried out through the cancellation of 1,009 tCO2eq in the Thai project developer’s account for issuance to the Government of Japan. Japan’s carbon credit registry subsequently recorded an equivalent amount (1,009 tCO2eq) in its system. Thailand will apply the corresponding adjustments for this amount in its Biennial Transparency Report (BTR) to prevent double claiming, in accordance with international rules.

This achievement reflects Thailand’s progress in implementing Article 6.2 of the Paris Agreement and marks an important milestone in advancing long-term climate cooperation between Thailand and Japan. To date, Thailand has developed 57 greenhouse gas reduction projects supported by Japanese investment, with total financial support amounting to JPY 13,839,040,000 and total leveraged investment of JPY 41,074,934,403. Japan’s Ministry of the Environment will open the next call for project proposals for investment support in early April 2026 and will co-host a seminar with TGO to promote the development of JCM projects on 17 December 2025. Further details are available at: https://ghgreduction.tgo.or.th/th/jcm.html

• Accounting of carbon credit holdings in accordance with the guidance issued by the Federation of Accounting Professions under the Royal Patronage of His Majesty the King

TGO and the Securities and Exchange Commission, Thailand (SEC) have engaged in discussions on establishing appropriate accounting practices for carbon credits, with the aim of providing guidance for companies that hold carbon credits certified by TGO in preparing their financial statements. In collaboration with the Federation of Accounting Professions under the Royal Patronage of His Majesty the King, the Accounting Standards Committee has developed a Q&A guidance document on the accounting of carbon credit holdings.

In general, carbon credits are defined as “intangible assets” under applicable accounting standards. The guidance outlines different accounting approaches for listed companies, financial institutions, insurance companies and other similar entities, which follow the relevant financial reporting standards, and for small and medium-sized enterprises (SMEs), which follow the financial reporting standards for non-publicly accountable entities. Entities must assess the purpose of holding carbon credits to determine whether they meet the definition of “inventory” or “intangible assets.” Carbon credits will start to be recognized as an asset from the date on which “they are certified by TGO”.

During the project development phase prior to the certification of carbon credits, entities must assess whether the expenditures incurred, such as tree-planting costs, project registration fees, and validation and verification costs, meet the definition of an asset under the applicable financial reporting standards. If such expenditures do not meet the definition of an asset, they must be recognized as expenses. Once the carbon credits are certified, any project development costs that meet the asset definition shall be recognized and measured in accordance with the purpose for which the carbon credits are held, whether they are acquired through purchase or generated from project development.

If the carbon credits are held and classified as “inventory,” entities shall apply the relevant accounting standards and financial reporting standards on inventory. The credits shall be recognized at cost or at net realizable value, except for brokers and carbon credit traders, who shall recognize them at the selling price net of costs to sell. If the credits are held for the entity’s own future use and do not meet the definition of inventory, they shall be classified as “intangible assets” and recognized at cost, or, where applicable, measured using the revaluation model based on observable market prices. This approach is permitted only when “an active market” exists, for example when a Thai carbon credit exchange platform is in operation.

In cases where carbon credits meet the definition of “inventory,” revenue may be recognized when the credits are sold or used under a contract with a customer. For carbon credits that are held for future use within the entity’s own operations and do not meet the definition of inventory, the entity shall apply the relevant accounting and financial reporting standards under the section on derecognition and disposal. The entity must also assess whether the useful life of the intangible asset can be determined. Carbon credits are regarded as intangible assets with an indefinite useful life; however, an amortization period of no more than ten years should be applied. If the entity uses the carbon credits immediately upon purchase or receipt, the credits must be recognized as an expense at that time.

This guidance will enable companies to prepare climate-related financial reports accurately and in accordance with the disclosure requirements for sustainability-related financial information under the International Financial Reporting Standards (IFRS).

To demonstrate its social responsibility and contribution to climate change mitigation, in alignment with national policy and as a model for other organizations, the 1st Performance Announcement for FY2026 collected data on the travel of invited guests and press representatives, electricity consumption during the event, the amount of waste generated, and emissions from the lunch, snacks, and beverages provided. These data were then used to assess the event’s greenhouse gas emissions through the Zero Carbon application, which is publicly available for download for those interested in calculating emissions. The resulting calculations can then be applied to achieve a Carbon Neutral Event by supporting greenhouse gas reduction through the purchase of carbon credits to offset the greenhouse gas emissions from all event activities, thereby ensuring that the event’s net emissions are reduced to zero. For today’s event, total emissions amounted to 1 tCO2eq, which were offset using carbon credits from a Standard T-VER renewable energy (biomass) project, enabling the event to achieve Carbon Neutral Event status.

Additional Information

• Premium T-VER (https://tver.tgo.or.th/)
• JCM (https://ghgreduction.tgo.or.th/th/jcm.html)
• Carbon Credit Holdings Guidance (https://www.tfac.or.th/Article/Detail/184116)
• Assessment of Greenhouse Gas Emission from Events (https://thaicarbonlabel.tgo.or.th/)