Thailand’s cabinet has approved the implementation of a 200 baht ($5.88) per ton carbon tax on carbon emissions as part of its strategy to reduce greenhouse gas emissions. The announcement was made on Tuesday by Deputy Finance Minister Paopoom Rojanasakul, who confirmed that the tax will be incorporated into the existing oil tax structure and will not impact retail prices of oil and related products.
The tax, embedded within the excise tax system, aims to calculate the carbon price associated with oil consumption. Paopoom Rojanasakul said, “The carbon price setting will not affect the cost of the industrial sector or retail oil prices.”
This measure is designed to encourage environmentally conscious consumer behaviour while supporting Thailand in international trade negotiations that prioritise environmental considerations.
The carbon price mechanism will apply to various oil-based products, including gasoline and gasohol, kerosene and jet fuel, diesel and biodiesel, liquid petroleum gas (LPG) and fuel oil.
The initiative targets Thailand’s automotive and oil industries, which are responsible for 70% of the country’s carbon emissions, according to the deputy finance minister.
Thailand has set ambitious climate targets, aiming to achieve carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065. The introduction of a carbon tax is a key step towards meeting these goals while addressing the environmental impact of high-emission sectors.
