News Briefing
The Ministry of Natural Resources and Environment of Thailand and the Swiss Federal Ministry of Environment concluded and signed "A series of cooperation agreements between the Kingdom of Thailand and the Swiss Confederation for the implementation of the Paris Agreement" at the end of June. This pact is recognized as the first carbon trading between countries as it is scripted in accordance with Article 6.2 of the Paris Climate Agreement, enabling both parties to realize the exchange and transfer of carbon credits through such a mechanism.
Impact Analysis
Although the concept of carbon trading is not a new one, many countries have begun to follow suit and are trying to formulate national or regional carbon trading systems as ETS due to the imminent global carbon reduction action. Although most of the mechanisms are still at the trial stage, they have given companies a basis for reference. As for the agreement between Thailand and Switzerland, it has expanded the impact of carbon trading, whether or not it remains a sporadic case or becomes a global trend, it could become a model for other countries to follow. This mechanism will surely be closely observed in the coming year.
Thailand is currently the most important production base for Taiwanese PCB in Southeast Asia, and its position here has highlighted the active participation of Thailand in carbon reduction. Future trends, in all likelihood, will see suppliers tending to move to regions with a low-carbon environment, staying close to the markets to reduce carbon emissions from transportation. Aside from signing the agreement, Thailand has implemented many strategies in order to create a low-carbon environment within the country. In the past year, it has announced several measures, which include green transportation, clean energy, ETS & carbon swapping, etc., and is most conducive to improving the competitiveness of the investment environment.