Verra and the Thailand Greenhouse Gas Management Organization (TGO) have signed a memorandum of understanding to jointly support the implementation of the Thailand Voluntary Emission Reduction Program (T-VER).
Verra is working with Thai officials to develop a domestic emissions reduction programme.
This builds on an existing ‘carbon club’ started by Thailand’s state-owned electricity company, Charoen Pokphand Group and BTS Group Holdings.
Development plans include a digital platform for e-carbon trading based on blockchain.
Robin Rix, Chief Legal, Policy, and Markets Officer, Verra said: “Thailand’s Voluntary Emission Reduction Program is an important step in advancing climate action domestically and globally. Verra is honored to support this important work by sharing information and our expertise gained from managing the Verified Carbon Standard Program.”
Thailand’s experience with voluntary emissions trading
In 2020, it was announced by Royal Decree that industries who conducted greenhouse gas emission reduction projects registered with the Thailand Greenhouse Gas Management Organization (TGO) were entitled to claim a corporate income tax exemption on net profits derived from the sale of carbon credits for three consecutive financial years under the Thailand Voluntary Emission Reduction Program (T-VER). The project shall be registered with the TGO between 23 June 2020 and 31 December 2021.
In 2021 Thailand’s state-owned electricity company EGAT, alongside Charoen Pokphand Group and BTS Group Holdings and seven other founders set up a carbon club to trade credits. The programme was expected to act as a pilot for the expansion of the carbon trading scheme to other companies within Thailand and to expand the current OTC model into a digital platform.
The Thailand Voluntary Emission Reduction Program (T-VER) was launched in 2013 by TGO as a project-based voluntary scheme to encourage GHG reduction and promote the carbon market in Thailand. The long-term goal is to extend the carbon market beyond T-VER to provide a platform for trading all carbon credits both within the country and across borders.
Agreement means ensuring that Thailand’s emissions reduction programme meets international standards
Under the MOU, Verra and TGO will cooperate to align T-VER standards with international best practice. To this end, Verra will share information about the requirements for the Verified Carbon Standard (VCS) Program, the world’s leading greenhouse gas crediting program.
Verra will also provide TGO with a general overview of carbon markets and the operation of the Verra Registry. In addition, the Verra team will assist TGO in navigating publicly available data regarding the VCS Program and its methodologies.
Kiatchai Maitriwong, executive director, TGO said: “Our collaboration will benefit the strengthening of the T-VER standard to be aligned with international practices. It will also expand Thailand’s opportunities to link with the global carbon market and support the country’s goals under the Paris Agreement and contribute to sustainable growth at the national, regional, and global levels.”
As more countries develop emission reduction programmes, market growth is sure to follow
According to the latest State of the Voluntary Carbon Markets report from Ecosystem Marketplace, the VCM grew in value towards $2 Billion in 2021. This quadrupling in market value from 2020 was driven by an acceleration of nature-based solutions trading volume and higher prices for these and other projects with non-carbon environmental and social benefits, such as clean cookstoves and water purification devices.
With new initiatives, such as the ICVCM and VCMI offering integrity guidance and principles, combined with the growing number of countries looking to explore the use of carbon credits, both to cut emissions and to meet emissions compliance requirements, the market is set to grow rapidly.