Thailand boosts green industry with World Bank project
Efforts are underway to enhance carbon data management in Thailand’s industry to boost investment in the Map Ta Phut sandbox, a collaborative project between the World Bank and the Industrial Estate Authority of Thailand (IEAT).
This initiative aims to reduce carbon dioxide emissions and support factory operators in Rayong’s Map Ta Phut Industrial Estate in transitioning to businesses based on clean energy.
The sandbox is designed to foster green industry and add value to carbon through trading, according to Sumet Thangprasert, acting governor of the IEAT. He believes the project will help companies achieve long-term cost savings.
Many factories are concerned about the European Union’s Carbon Border Adjustment Mechanism (CBAM), which targets carbon-intensive manufacturing. CBAM necessitates the use of more renewable energy to avoid non-tariff barriers for exports to EU countries.
Starting in October 2023, the transitional phase of CBAM requires importers to report greenhouse gas emissions from their goods without financial penalties. However, from January 1, 2026, importers will need to purchase CBAM certificates.
Sumet mentioned that the IEAT plans to study the feasibility of carbon capture technology adoption under the sandbox, with the World Bank offering green loans to companies pursuing green technology investments.
PTT Plc, a national oil and gas conglomerate, and Siam Cement Group, Thailand’s largest cement producer and industrial conglomerate, have expressed interest in joining the sandbox.
There are 5,300 factories in industrial estates nationwide, and their efforts to decrease greenhouse gas emissions or prioritise eco-friendly manufacturing are integral to the government’s campaign against global warming.
Former Prime Minister Prayut Chan-o-cha announced at the 26th UN Climate Change Conference in 2021 that Thailand would actively address climate change, aiming for carbon neutrality by 2050 and net-zero emissions by 2065.
Sumet anticipates that the sandbox will also support the IEAT’s industrial land sales, with a target to sell between 8,000 and 10,000 rai in 2025, up from 6,000 rai in the previous year. Increased clean energy supply is among the factors that can attract investment.
According to media reports, the government aims for the investment value in the country to represent 27% of GDP by 2026, reported Bangkok Post.
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