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Authorities are accelerating efforts to enhance carbon data management across industrial estates as part of a broader initiative to attract green investment in Thailand’s Map Ta Phut Industrial Estate. The project, a joint collaboration between the World Bank and the Industrial Estate Authority of Thailand (IEAT), is part of the Map Ta Phut sandbox – a program designed to drive industrial decarbonization and clean energy adoption. According to Sumet Thangprasert, acting governor of the IEAT, the sandbox serves as a testbed for developing green industry models and unlocking carbon value through mechanisms like carbon trading. “This project should help companies save costs in the long term,” Mr. Sumet noted, underscoring the financial incentive for factories to reduce emissions. The initiative is gaining interest from major industrial players such as PTT Plc, Thailand’s national oil and gas conglomerate, and Siam Cement Group, the country’s largest cement producer. These companies are exploring participation in the sandbox to future-proof operations against rising global climate standards. CBAM Pressures Spur Transition The urgency to decarbonize stems partly from the European Union’s Carbon Border Adjustment Mechanism (CBAM) – a policy targeting high-emission imports. While its transitional phase, launched in October 2023, currently mandates only emissions reporting, financial compliance will begin on January 1, 2026, when importers must purchase CBAM certificates. Factories exporting to the EU are expected to shift to renewable energy sources to avoid trade barriers. The sandbox initiative aims to prepare Thai industries for this transition through green financing, including World Bank-issued green loans, and a feasibility study on carbon capture technologies. National Climate Goals and Industrial Impact The IEAT’s initiative aligns with Thailand’s climate commitments made at COP26 in 2021, when former Prime Minister Prayut Chan-o-cha pledged to achieve carbon neutrality by 2050 and net-zero emissions by 2065. With over 5,300 factories operating within Thailand’s industrial estates, the shift to eco-friendly manufacturing is seen as critical to the national strategy to combat climate change. Beyond environmental benefits, Mr. Sumet expects the sandbox to boost the IEAT’s industrial land sales, targeting 8,000–10,000 rai in 2025, compared to 6,000 rai sold last year. He emphasized that access to clean energy remains a key factor in driving future industrial investments. The Thai government has set a goal to raise investment contribution to 27% of GDP by 2026, with green industrial growth forming a core pillar of this vision. |
