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Thailand’s Excise Department is planning to impose a carbon tax on energy, transport, and industrial sectors to help the country reach carbon neutrality by 2050 and net zero greenhouse gas emissions by 2063.
Encourage companies to use cleaner or renewable energy
The carbon tax will encourage companies to use cleaner or renewable energy, and reduce CO2 emissions by up to 30%. The tax study is underway and will be completed this year.
The energy sector is the largest contributor to CO2 emissions in Thailand, followed by transport and industrial sectors. The carbon tax is expected to help cut the cost of imported fuel and avoid rising costs due to EU’s carbon border adjustment mechanism. Thailand is promoting electric vehicles, greater use of renewable energy, and the carbon tax to meet its environmental goals.
Energy sector accounts for 35% of CO2 emissions
The energy sector accounts for 35% of CO2 emissions in Thailand because most electricity is generated by burning oil, natural gas, and coal, and transport sector accounts for 32% of CO2 emissions, the industrial sector 27%, and households 6%.