Global temperature change or “Global Warming” is the world important issue that affects climate and ecosystems around the world. It is a threat to human life. Moreover, it also affects economic and social development, especially the agricultural sector both direct and indirect. Global warming is caused by an increase in the atmospheric concentrations of greenhouse gases that leads to climate change. It causes various natural disasters such as floods, droughts, and windstorms, becoming more and more intense these days. For Thailand in 2000, 70% of greenhouse gas emissions were from the energy sector, 22.6% from the agricultural sector and the rest were from industrial processes, waste, and land using. Global warming has large impacts on Thailand, and it is also a threat to achieving country development with sustainability.

The Thai Rubber Association has received information from the Royal Thai Embassy Brussels on the implementation of Carbon Border Adjustment Mechanism (CBAM) measure of the EU. The general meeting of the Council of Europe has approved the issuance of the Carbon Border Adjustment Mechanism (CBAM) measure on March 10, 2021, to adjust the imported product prices to reflect the amount of greenhouse gas emissions caused by the production process which is higher than products producing in the EU. There are summarized main points from the meeting as follows; 1). the Carbon Border Adjustment Mechanism (CBAM) measure must relate to the principles of the World Trade Organization (WTO) and in accordance with a new Industrial Strategy for a globally competitive, green, and digital Europe; 2). Imported goods should be charged on a carbon tax at the same rate as the companies in the EU have to pay to create an equal competitive environment. The measure will start to apply with the imported goods from the third countries that emit high carbon, including cement, electricity, fertilizer, steel, and aluminum. Then, the measure will be considered to apply with other goods which may include goods in the value chain; 3). The meeting agreed to maintain the free allocation of emission allowances for companies in the EU until a careful evaluation of the efficacy and effectiveness of CBAM measures to prevent carbon leaks to third countries is undertaken (source: https://bit.ly/3wNw4KZ). However, China, India, Japan, and ASEAN including Thailand and Indonesia consider that the CBAM measure is complex and it is a trade protectionism measure that discriminates against developing countries. Furthermore, there are also WTO legitimacy issues and fair management of income from the measure implementation.

The Thai Rubber Association (TRA) considered that rubber planting is one of the solutions that can help to reduce the global warming issue. More importantly, rubber is also a major source of carbon absorption or storage as well as tropical forests. According to Dr. Duangrat Satakhun and Assoc. Prof. Dr. Poonpipope Kasemsap, a research team from the Faculty of Agriculture, Kasetsart University, every 1 kg of natural rubber latex are created from “CO2 fixation net” more than 20 kg. It means that a rubber tree can grip CO2 into its trunk and root. Moreover, it helps to increase CO2 in soil accumulation from leaf, cutting, stem, fruit, and root decay, resulting in reducing CO2 in the air. Therefore, natural rubber is considered a green product. Besides, the ecosystem in the rubber plantations is a carbon sink or carbon reservoir because rubber trees can absorb CO2 by the photosynthesis process and convert CO2 into biomass accumulating in the rubber ecosystem.

The Thai Rubber Association will monitor the implementation of Carbon Border Adjustment Mechanism (CBAM) measure of the EU. Additionally, TRA will inform members and relevant parties to prepare for the measure that may affect Thai rubber exports to the EU.

Mr.Chaiyos Sincharoenkul

President

The Thai Rubber Association