Thailand’s carbon credit market is under the spotlight. While businesses continue to implement efforts to reduce their greenhouse gas emissions, there remain certain sectors that are difficult to abate. Carbon credits are therefore important measures for businesses to achieve their carbon neutrality and net zero targets.

Amidst the growth of Thailand’s voluntary carbon credit market, investors will still encounter market risks around carbon credit trading, including demand, supply, price, and trading channel risks.

Demand risks focus on uncertainties in the carbon credit market. Given the voluntary nature of carbon credits, they are not the first choice for prospective buyers, whose priority is more focused on implementing carbon reduction initiatives.

Supply risks derive from the fact that Thailand’s carbon credit market is more suited to large-scale, rather than small-scale, investors. There is uncertainty around the regularity of carbon credit trading volumes, and as the market is still developing, carbon trading is based on agreements between buyers and sellers.

Price risks: As Thailand’s carbon credit market is still in development, there are currently no clear regulations or a system to maintain the stability of carbon credit supply and demand. Because of this, there are risks concerning price volatility and price drops.

Individuals interested in carbon credit trading should carefully examine the information available on the different methods of carbon credit investments, as well as new, progressive technologies that are playing a greater role in reducing greenhouse gas emissions. They should also identify other alternatives to achieve their greenhouse gas reduction and net zero targets in a sustainable way.

Advanced biofuels will play a crucial role in reducing greenhouse gas (GHG) emissions for heavy-duty vehicles: namely trucks and airplanes. Since advanced biofuels are functionally equivalent to petroleum-derived fuels and thus compatible with existing infrastructure and engine technology, they are considered the prime alternatives for the energy transition of the transport sector, especially the hard-to-decarbonize vehicles.


Biofuels are facing debates over life-cycle sustainability, particularly in terms of food security and cultivation problems. Food-based biofuels cause competition between food and biofuel feedstock, leading to food insecurity and rising food prices. Also, biofuel production usually consumes massive resources, resulting in extensive impacts on the environment and ecosystem.


Advanced biofuels have thus been introduced to solve life-cycle sustainability issues. Unlike food-based biofuels, advanced biofuels are derived from non-food resources—such as agricultural residues and energy crops—with more environment-friendly cultivation and conversion processes.


Yet, advanced biofuel technology is still in its infancy. Without a technological breakthrough, they are unable to compete with other alternative fuels due to higher prices and insufficient drop-in properties to replace fossil fuels. Hence, investing in technology research and development is essential to establish a solid and efficient foundation for the advanced biofuel industry.


Thailand has the potentials to transform an existing biofuel industry into advanced biofuels, with feedstock advantage and knowledge at the ready. There are substantial and diverse residues from Thai agricultural sector that can be converted into advanced biofuels. Besides, Thailand could seize this opportunity to promote agricultural waste valorization and transition to a circular economy.


In particular, the Sustainable Aviation Fuel (SAF) offers a golden opportunity for Thailand to meet growing demand from aviation firms around the world. As global air transports are pivoting to more sustainable jet fuels in order to meet the net-zero emissions target, flights to and from Thailand will call for SAF supply availability at Thai airports as well.


The key to making headway in advanced biofuel development requires significant government supports and stakeholder synergy. The policy should be consistent with clear direction, flexible and adaptable to changes, and also align with current technological capabilities. Furthermore, the government should develop a favorable environment that fosters market competition and collective efforts from all stakeholders in paving the way towards sustainable development in the energy sector.

Power generation is one of the main sources of greenhouse gas (GHG) emissions, accounting for approximately 30% of total global emissions. The power industry’s transition towards cleaner energy use is crucial to achieving net-zero – as it can mitigate the impacts of climate change through the adoption of cleaner generation capacity and clean technologies, which are declining in cost.

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