Thailand’s second public consultation of 2024 on climate bill introduces CBAM Framework 
On November 8, 2024, the Department of Climate Change and Environment (DCCE) of Thailand’s Ministry of Natural Resources and Environment launched its second public consultation on the revised Climate Change Bill. Stakeholders were invited to submit comments through a dedicated system until November 22, 2024. The bill aims to establish key mechanisms to: (i) reduce greenhouse gas (GHG) emissions, (ii) strengthen adaptation to climate change, and (iii) support an effective transition to a low-carbon economy and society. Specifically, these mechanisms include the creation of a Climate Change Fund to be financed through the GHG Emissions Trading Scheme and the introduction of a framework for Carbon Border Adjustment Measures (CBAMs). These funds will promote GHG reduction projects and innovative technology development, contributing to strengthening Thailand’s climate resilience.
The drafted bill maintains the 14-chapter structure of the previous version (issued in February 2024) while expanding from 169 to 202 articles. While preserving its basic principles and goals, with increased numbers of articles in many chapters, the current bill includes major revisions, notably the addition of Chapter 9 “Carbon Border Adjustment Mechanism (CBAM)” and the removal of former Chapter 12 “Measures to Promote Climate Change Action (the 1st session).” The Key provisions of the bill are outlined below.
Preamble (Articles 1—5)
The purpose of this bill is to address climate change issues in Thailand and promote the transition to a low-carbon economy and society. The legislation aims to enhance the country’s adaptive capacity to climate change and strengthen its climate resilience. Furthermore, it seeks to create an enabling environment for climate action. The bill also provides definitions for key terms including climate change, greenhouse gases, greenhouse gas reduction, climate change adaptation, and emission allowances.
Chapter 4 Climate Fund (Articles 19—37)
- Part I. Establishment, Income and Expenditures of Climate Fund
A Climate Fund will be established and utilized as a resource to increase the competitiveness of Thailand. The revenues of the Fund will come from a variety of sources, including the Emissions Trading Scheme (ETS), Carbon Border Adjustment Measures (CBAM), government grants, and donations. The Fund will support activities related to GHG reduction, climate change adaptation, research and development, and Fund administration.
Chapter 6: GHG Information (Articles 43—65)
- Part II: Corporate GHG Emissions Reporting
To inform GHG reduction measures, emissions trading schemes, and the promotion of GHG reductions, a mandatory corporate GHG emissions reporting scheme will be implemented. The bill stipulates the following:
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- Reporting Requirements and Obligated Parties
- Required Report Content
- Review Procedures
- Report Validation Process
- Data Management System
- Information Disclosure
Chapter 8: GHG Emission Trading Scheme (Articles 72—99)
The GHG Emission Trading Scheme (ETS), also known as Cap and Trade, is a mandatory mechanism established under the Climate Change Bill to regulate GHG emissions. The scheme establishes emission caps aligned with national reduction targets and implements a system for distributing emission allowances through either free allocation or auctions. Non-compliance, including emissions exceeding allocated allowances, will be subject to audits and penalties.
Chapter 9 Carbon Border Adjustment Measures (Articles 100—117) [Newly added]
The introduction of a GHG emissions trading system (ETS) and carbon tax mechanism in Thailand may lead to (i) production site relocation, (ii) the transfer of emissions to other countries, and (iii) increased imports of goods equivalent to those produced domestically. This risk arises from disparities in climate policy stringency across jurisdictions. To address this concern, a Carbon Border Adjustment Mechanism (CBAM) will be established through a ministerial decree for imported goods.
Chapter 10: Carbon Tax (Articles 118—147)
A carbon tax is a mandatory mechanism to control GHG emissions which impose a fee on GHG emissions as a tax, which will be collected from industrial emitters and importers.
Chapter 11 Carbon Credits (Articles 148—155)
- Part 1: Management and Use of Carbon Credits
The bill aims to protect the interests of Thailand and its people by efficiently managing carbon credits, ensuring transparency in tracking and monitoring following the framework of international agreements, and supporting domestic GHG reduction projects. - Part 2: Management of Carbon Business and Services
Carbon credit transactions and transfers shall be strictly monitored in accordance with the relevant laws and regulations to prevent fraud and misuses. This will enhance the transparency and credibility of the carbon credit market.
Chapter 13: Climate Change and Environmentally Sensitive Economic Activity Criteria (Articles 173—175)
A commission will develop Classification Criteria (or Taxonomy) for Economic Activities Considering Climate Change and Environmental Factors. The criteria shall provide all stakeholders with standardized benchmarks to assess climate action progress and ensure consistent approaches to strategic planning, policymaking, implementation planning, and resource allocation.
The Thailand’s Second Public Consultation on Climate Change Bill can be accessed via the link below.
https://www.dcce.go.th/news/view.aspx?p=20095
The central law database system of Thailand can be accessed via the following URL.
https://law.go.th/listeningDetail?survey_id=NDU5OURHQV9MQVdfRlJPTlRFTkQ=
