As the world is preparing for measures to counter global warming, the Thailand Development Research Institute (TDRI) advocates for the government to swiftly implement carbon taxes. The move is expected to foster new trade opportunities and encourage both public and private sectors to adapt to new market conditions.
At the TDRI annual seminar for 2023, the institute’s president, Somkiat Tangkijvanich, stated that Thailand faces trade and investment restrictions, particularly from the European Union’s upcoming Carbon Border Adjustment Mechanism (CBAM).
This policy is expected to affect the import of specific heavy industrial goods and may expand to other products in the future. The regulations will have a direct impact on Thailand’s economy, especially affecting the private sector in trade, investment, and exports.
The government is advised to promptly develop a clear strategy for reducing greenhouse gas emissions. TDRI suggests a dual-system carbon tax, comprising a tax on exported goods and an energy carbon tax. The initiative is expected to generate approximately 30 billion Baht in annual revenue for the government.
The funds should be allocated to a dedicated account aimed at reducing greenhouse gas emissions and adapting to changing climate conditions, supporting both production sectors and the public. (NNT)
