Since 1966, global warming has increased due to greenhouse gas emissions. Carbon dioxide concentrations in the atmosphere have increased constantly. The Intergovernmental Panel on Climate Change (IPCC) reported in the IPCC’s Sixth Assessment Report (AR6) that global average temperatures could exceed 4 degrees Celsius by the end of the century. El Niño conditions are likely to intensify. Besides, Thailand is listed as a group at very high risk of future economic damage from the El Niño phenomenon. Climate change has severe impacts in the form of various natural disasters, including floods, droughts, and storms, which are becoming more severe. In addition, it has wide-ranging impacts on the agricultural sector, forestry, coastal areas, water resources, health, and living things. Moreover, it also has implications for businesses and industries connected throughout the chain. Climate change has led many countries to work together to solve the problem by reducing greenhouse gas emissions, a major cause of global warming.

One economic way to help reduce greenhouse gas emissions is to create a carbon market, or carbon credit trading market. The Thailand Greenhouse Gas Management Organization (Public Organization) has defined the carbon market as a medium for trading and exchanging "Carbon credits" using the market mechanism concept as an incentive to reduce net greenhouse gas emissions. Furthermore, it also affects those who cause pollution, release greenhouse gases, or have a cost in releasing greenhouse gases to mitigate or compensate for the impacts that will affect the world and people affected by global warming. Presently, the carbon market could be divided into two types: 1. Mandatory Carbon Market is a carbon market established by the mandatory reduction of greenhouse gas emissions regulated by law. The participants must have a legally binding target for reducing greenhouse gas emissions. On the other hand, if the participants cannot achieve greenhouse gas emissions reduction at the set target, they will be punished. The mandatory carbon market is a large market with high liquidity, and every project type is traded at one price. And 2. Voluntary Carbon Market is a carbon market that is set up with the voluntary cooperation of entrepreneurs and organizations. The participants may set their own goals for reducing greenhouse gas emissions that are not legally binding. However, it is a purchase for corporate social responsibility (CSR). The voluntary carbon market is not a large market, and each project type has different prices. There are 2 types of carbon credit trading, as follows: 1) Trading Platform or official carbon trading center; and 2) Over-the-counter (OTC), which is the deal between sellers and buyers without the market (Source: Thailand Greenhouse Gas Management Organization: Public Organization).

The Thai Rubber Association (TRA) encourages all relevant sectors to voluntarily participate in reducing greenhouse gas emissions in the country to reduce the impact of global warming. In addition, greenhouse gas emissions reduction can be used to trade through the carbon market.

Mr. Chaiyos Sincharoenkul

President

The Thai Rubber Association