The Ministry of Natural Resources and Environment will submit the country's first-ever climate change draft to the cabinet for approval by the end of this year.
The document is being drafted by official experts at the Office of Natural Resources and Environmental Policy and Planning (Onep).
"The climate change draft will help the country protect the environment and drive the economy," said Environment Minister Varawut Silpa-archa.
"Our carbon footprint will also be significant in the future, so this law will help the country get a better carbon footprint report and that will help us work in line with global action to reduce global warming."
If the draft bill is adopted early next year and then enacted, Mr Varawut said that factories and related businesses would be required to record their carbon emissions.
The purpose of the new law, said Mr Varawut, was to help the government and related sectors meet the goals it supported with the Paris Accord of 2016.
That agreement requires participant countries to take measures to limit the rise in global temperatures to no more than two degrees Celsius.
Since ratifying it, Thailand has set a goal for each sector to reduce its carbon emissions by 20% to 25% by 2030 -- the transport and energy sector is aiming to reduce its carbon footprint by 11-20%, while the goal is 20% for other sectors, including agriculture and industry. For some activities with technological support, the government expects the reduction to be as high as 25%.
The law will require the industrial sector to report its greenhouse gas emissions data and define how it has calculate its carbon emissions -- this is usually based on electricity bills.
Exports would also need to have labels with carbon footprint data.