News Room - Business/Economics

Posted on 05 Sep 2007

Thai firms must cut emissions

Thailand's industrial sector needs to speed efficiency upgrades to reduce greenhouse gas emissions or it will face growing difficulties in the world trade market, said Chakramon Phasukvanich, the permanent secretary for the Industry Ministry.

Mr Chakramon, speaking yesterday at a seminar on global climate change, said the industrial sector would face growing pressure in the future as a major source of greenhouse gases.

Public awareness of the dangers of climate change is prompting regulatory and consumer action against polluting industries. Companies and countries that are major emitters of greenhouse gases could face new forms of non-tariff barriers over the next 10 years.

"It is inevitable. The extremely strict environmental protection standard created by the European Union such as 'Reach' legislation will turn into a global standard," Mr Chakramon said.

Like other developing countries, Thailand still emits a small volume of greenhouse gases, such as carbon dioxide, methane and hydro fluorocarbons compared with some large developed nations. Under the United Nations Framework for Climate Change (UNFCCC) and the Kyoto Protocol phase one, small-volume-gas-emission countries would not be obliged to control polluting activities.

In 2003, Thailand emitted 344 million tonnes of CO2 equivalent, accounting for only 0.7% of total global emissions. Phase one of Kyoto will end in 2012 and the next phase is still under negotiation.

If Thailand must cut down greenhouse gas emission volumes in the future, some new legal regulations focusing on higher energy efficiency, alternative fuel and renewable energy could be enacted by the government.

At present, the government supports alternative fuel and renewable energy producers with investment privileges from the Board of Investment and a high feed-in tariff for electricity generated from renewable energy sources, such as solar, wind, biomass and biogas.

Mr Chakramon said the energy sector was the major greenhouse gas producer in Thailand, accounting for 56%. It is followed by agriculture with 24.1%, the waste sector 7.8%, pattern changes of land utilisation at 6.6% and the industrial sector at 5.4%.

Around 11% of greenhouse gases from the energy sector are generated by industrial production, said Mr Chakramon.

Bangkok Post, September 5, 2007