An initiative to establish a carbon credit market in ASEAN is gaining momentum as Bangchak Corp, an energy conglomerate, partners with Bursa Malaysia, the Malaysian stock exchange, to advance this project.
Bangchak aims to create a regional standard for carbon credit trading after launching the Carbon Markets Club in 2021 to foster carbon credit trading in Thailand. The club currently has approximately 1,000 members, including both individuals and companies.
Thailand and Malaysia have agreed to engage in discussions with other ASEAN countries to develop the ASEAN Common Carbon Framework (ACCF) for this purpose, according to Gloyta Nathalang, Bangchak’s senior executive vice-president for sustainability management and corporate communications.
Mrs. Gloyta made these remarks following her participation in the 2024 Malaysia Carbon Market Forum, where she shared insights as the chairwoman of Thailand’s Carbon Markets Club in a session titled “Creating a High Integrity ASEAN Carbon Market.”
“This session focused on building a high-quality carbon credit market within ASEAN and explored the potential of the ACCF to support the region’s carbon neutrality strategy,” she stated.
Like other countries in the region, Thailand is committed to efforts aimed at slowing global temperature rise.
Thailand has announced plans to achieve carbon neutrality—striking a balance between carbon dioxide emissions and absorption—by 2050.
The carbon credit trading system serves as an economic incentive for businesses to reduce their carbon dioxide emissions. It pertains to the extent to which emissions are lowered through environmental projects, including the development of clean energy.
The credits generated can be sold to companies to help offset their carbon dioxide emissions.
The ACCF aims to facilitate increased carbon credit trading among ASEAN nations, ultimately establishing a regional carbon trading standard that could serve as a cost-effective alternative to the existing European Gold Standard.
Mrs. Gloyta noted that the first step for the ACCF is to encourage collaboration among ASEAN nations to develop a carbon credit market.
In Thailand, carbon credit trading is certified by the Thailand Voluntary Emission Reduction Program, which was launched in 2014 by the Thailand Greenhouse Gas Management Organization, a public entity created to promote voluntary greenhouse gas emission reductions among government agencies and companies.
