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Thailand’s Cabinet Approves Framework for International Carbon Credit Trading

On 26 August 2025 the Thai Cabinet approved the International Carbon Credit Guideline, setting out a framework for the transfer of carbon credits generated in Thailand for use toward other countries’ greenhouse-gas (GHG) targets. The guideline modernizes Thailand’s previous carbon credit management mechanisms and aligns domestic practice with the Paris Agreement (Articles 6.2 and 6.4) and other international carbon‑crediting schemes. It also clarifies the roles of state agencies and establishes a project‑approval process and corresponding‑adjustment requirements.

National Designated Authority and Registry

✓   The Department of Climate Change and Environment (DCCE) has been designated as the National Designated Authority (DNA) for international carbon credit transfers. It will coordinate on cooperation agreements and issue authorizations for carbon credits to be used abroad.

✓   The Thailand Greenhouse Gas Management Organization (TGO) will manage the carbon‑credit registry, record issuance and transfers, and coordinate with the Article 6.4 Supervisory Body and other international standards bodies.

Eligible Project Categories

The guideline defines ten types of projects from which carbon credits may be transferred overseas, provided they go beyond Thailand’s existing Nationally Determined Contribution (NDC) action plans and meet additional criteria (e.g., measurable and verifiable GHG reductions, capacity‑building contributions). The project types are:

1.   Greenhouse gas capture, storage or utilization—including carbon capture and storage (CCS), carbon capture and utilization (CCU) and direct‑air capture (DAC).

2.   Renewable energy or fossil‑fuel replacement projects—such as green hydrogen, tidal and offshore wind power, geothermal energy, sustainable aviation fuel, and production/use of green ammonia.

3.   Energy‑efficiency improvements in buildings, factories or households—for example, replacing fossil‑fuel furnaces and boilers with high‑efficiency electric models and upgrading industrial motors.

4.   Efficiency improvements in electricity or heat generation, including deployment of energy storage systems or production of green pallets from agricultural waste for combined heat and power.

5.   Transport‑sector emission reductions—such as electrifying transportation systems, adopting hydrogen‑fuel vehicles, plug‑in hybrids, fuel‑cell electric vehicles and improving engine efficiency.

6.   Industrial process or waste‑management improvements—e.g., low‑carbon cement production, using CO₂ or green hydrogen to produce methanol, and reducing fluorinated‑gas use through substitution, recovery and environmentally sound disposal.

7.   Agricultural and livestock waste management—including soil‑management practices, methane‑reduction techniques in rice cultivation, improved animal feeds and breeds, and producing advanced bio‑methanol from agricultural waste.

8.   Wastewater and solid‑waste treatment using advanced technology, such as technology to decompose food waste or enhance community wastewater‑treatment systems.

9.   Forestry‑related emission reductions, including restoration of degraded forests, sustainable forest management and afforestation for carbon sequestration.

10.   Other project types approved by the National Committee on Climate Change Policy and consistent with Thailand’s mitigation strategies.

Additional Conditions

Projects seeking authorization to export carbon credits must satisfy further requirements, including: (i) delivering emission reductions or removals beyond Thailand’s current NDC Action Plan; (ii) aligning with Thailand’s long‑term low‑GHG‑emission development strategy and supporting capacity‑building and sustainable development; and (iii) generating mitigation outcomes that are measurable, reportable and verifiable and certified in tonnes of CO₂‑equivalent.

Application and Transfer Procedures

✓   Project owners must apply to the DCCE for a letter of authorization before selling or transferring credits internationally.

✓   The DCCE will evaluate projects against criteria such as consistency with Thailand’s international obligations, the NDC Action Plan, and the reasonableness of the proposed credit‑sharing arrangements.

✓   Once authorised, carbon credits may only be issued and transferred after the project has been registered under the applicable standard—either with TGO (Article 6.2), the Article 6.4 Supervisory Body or another international standard body.

✓   Transfers must undergo a “corresponding adjustment”, ensuring that credits used for international objectives are not also counted toward Thailand’s own NDC. Reports indicate that Thailand will cap such international transfers at 3 % of its national greenhouse‑gas‑reduction target, though this limit is not explicitly stated in the guideline.

Practical Implications

This framework positions Thailand to participate in global carbon markets while safeguarding its domestic climate commitments. Developers should assess whether their projects qualify under one of the ten categories and ensure that mitigation outcomes exceed existing national plans. Companies interested in exporting credits should begin early engagement with the DCCE and TGO to navigate authorization, registration and transfer procedures. Moreover, careful documentation and verification will be essential to meet the “measurable, reportable and verifiable” standard.

We will continue to monitor implementing regulations and any additional conditions or caps (such as the expected 3 % transfer limit) as they emerge.

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