FTI rolls out carbon credit trade platform

FTI rolls out carbon credit trade platform

FTIX accessible to firms of all sizes

Mr Varawut, centre, flanked on the left by Mr Somphote, at a ceremony to launch FTIX.
Mr Varawut, centre, flanked on the left by Mr Somphote, at a ceremony to launch FTIX.

The Federation of Thai Industries (FTI) has launched a carbon credit platform to encourage entrepreneurs to reduce carbon dioxide emissions in a move to help the government fight global warming.

Carbon credits refer to an amount of greenhouse gas reduction generated by environmental projects, which can be traded by companies to offset the carbon dioxide they release into the earth's atmosphere.

Called FTIX, the platform is reliable and easy to access for companies of all sizes, said Somphote Ahunai, vice-chairman of the FTI.

The platform, jointly developed by the FTI and Thailand Greenhouse Gas Management Organisation, will mark a significant step in the promotion of a carbon credit market in the country, he said.

Mr Somphote is also chairman of the climate action institute under the FTI.

The federation also supports renewable energy certificates (REC), an economic incentive aimed at encouraging power plant owners to produce electricity from clean fuels.

Each REC, which certifies the bearer generates one megawatt-hour from renewable energy resources, can be traded as an energy commodity.

This market-based instrument was first introduced at the 2015 UN Climate Change Conference, also known as the Paris Agreement.

A ceremony to launch FTIX was yesterday presided over by Natural Resources and Environment Minister Varawut Silpa-archa who urged the state and private sectors to work together to make Thailand a low-carbon society.

Natural disasters taking place in many areas worldwide are alerting people to the impact of climate change, mainly caused by greenhouse gas emissions.

Thailand is one of 10 countries which have encountered a serious impact from climate change, said Mr Varawut.

Thailand is ranked 21st globally for greenhouse gas emissions, generating around 0.8% of the world's greenhouse gas emissions.

Mr Varawut's ministry is working on various measures to help the government reduce greenhouse gas emissions. They include promotion of renewable energy, waste-to-energy power plants and greater use of electric vehicles.

In the agricultural sector, rice farming also needs to be improved in order to reduce methane emissions. Methane emissions are considered to be a greenhouse gas, he said.

Prime Minister Prayut Chan-o-cha vowed last year during the 26th UN Climate Change Conference in Glasgow that Thailand would be more aggressive in addressing climate change and strive to reach carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2050, along with a net-zero target by 2065.

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