The Government Announces Policy to Advance the Net Zero Target by 15 Years: A Major Turning Point Reshaping the Future of Thai Industry

On 29 September 2025, the government under Prime Minister Anutin announced a new policy to accelerate Thailand’s Net Zero target by 15 years, moving the timeline forward from 2065 to 2050. In the government’s policy statement delivered to the National Assembly, the Prime Minister declared the commitment to transition Thailand towards a low-carbon society, setting a revised target for the country to achieve net zero greenhouse gas emissions by 2050, instead of the previous goal of 2065.

This policy marks a major shift in Thailand’s climate agenda since the nation first committed to a Net Zero target before the international community in 2021. The acceleration of the Net Zero timeline by 15 years represents a significant turning point that will reshape the future of Thai industry. The government has sent a clear signal that: “Reducing greenhouse gas emissions is not an option, but the pathway for the survival of the Thai economy in the future world.”

 
Advancing the Net Zero target to 2050 represents a critical step in enabling Thai industries to transition toward a low-carbon economy in line with global trends. Retaining the original 2065 target would have resulted in Thailand achieving Net Zero 15 years later than 111 other countries, thereby posing the risk of exclusion from future global trade networks. This is because countries and companies with a Net Zero 2050 target are increasingly inclined to purchase goods and services only from nations and businesses that have set a Net Zero timeline no later than their own.

Accordingly, the announcement of the new 2050 target—consistent with recommendations from a 2024 study by SCB EIC—serves as a key mechanism to accelerate private sector adaptation in alignment with international standards. The transition to a low-carbon economy will require sustained and substantive government support throughout the next 25 years.

While the new target represents a significant advancement for Thailand, in the global context it merely signifies a “return to international standards,” comparable to countries such as Japan, the European Union, and Vietnam, which have already announced Net Zero 2050 commitments. This new target therefore presents both a challenge and a critical imperative for Thai enterprises to accelerate their adaptation efforts.

 
The Net Zero 2050 target will create both opportunities for certain industries to expand and pressure for others to accelerate their transition in response to increasing domestic challenges. Under the Net Zero 2050 policy, industries that contribute to reducing greenhouse gas emissions are expected to experience growth, driven by rising demand for relevant goods and services. These include:

1. Industries within the renewable and clean energy supply chain

2. Industries related to enhancing energy efficiency

3. Industries within the electric vehicle supply chain

4. Waste management industries

5. Bio-based materials industries

6. Low-carbon fuel industries

7. Carbon capture and storage (CCS) technology industries

Conversely, industries with high greenhouse gas emissions will face greater domestic pressure. Previously, Thai businesses were already under pressure from international trading partners that had set Net Zero targets 15 years ahead of Thailand. The government’s announcement of the Net Zero 2050 target will intensify such pressures domestically through the phased introduction of new measures, such as carbon taxation and the enforcement of an emissions trading system (ETS) .

These measures will accelerate the need for high-emission industries—such as oil and gas, fossil-fuel power generation, steel, cement, chemicals, and internal combustion engine automobiles—to adapt within a shortened timeframe of 15 years if they are to sustain growth in a low-carbon economy. Encouragingly, several companies in Thailand have already set Net Zero 2050 targets.

 
Entrepreneurs must begin to seriously reduce greenhouse gas emissions within their business operations while also seeking new business opportunities arising from the Net Zero 2050 target. Pressure from both domestic and international sources has made greenhouse gas reduction an unavoidable imperative for businesses seeking long-term sustainable growth. Entrepreneurs can initiate this process through five key steps:   

1. Assess the organization’s greenhouse gas emissions

2. Set emission reduction targets in line with international standards

3. Identify appropriate technologies and strategies for emission reduction, considering both cost and feasibility

4. Implement measures to reduce greenhouse gas emissions

5. Monitor and report progress transparently to build stakeholder confidence

In addition, entrepreneurs should leverage this opportunity to expand into industries with strong potential in a low-carbon economy, such as participating in the supply chain of clean energy, electric vehicles, or bio-based materials. They should also utilize green finance or transition finance to develop new products and services, such as low-carbon agricultural products or sustainability-focused hotel businesses.

 
At the same time, the government must accelerate the introduction of concrete support measures to encourage businesses and households to adopt low-carbon practices. Such measures should encompass two key areas:

1. Incentive measures for those with capacity but lacking motivation to transition—for example, increasing targets for renewable energy procurement, reducing electricity purchases from fossil fuels, and providing tax credits for industries utilizing clean energy.

2. Support measures for vulnerable groups lacking resources—such as providing education and awareness, offering low-interest loans for small businesses, or granting financial assistance to low-income households for energy-efficient home improvements.

The design of policies that address this diversity of needs will be a critical factor in driving the nation towards achieving Net Zero in a meaningful and sustainable manner.

 
The Net Zero 2050 policy is not solely an environmental issue but a matter of the survival of Thai industries on the global stage. Businesses that adapt in a timely manner will gain a competitive advantage, while those that lag behind may be left at a disadvantage. Therefore, the business sector must take action now and integrate carbon reduction as a core component of their primary strategies.