The 26th UN Climate Change Conference of the Parties (COP26) in Glasgow, Scotland on 31 October – 12 November 2021 plays a vital role in future energy direction. Thailand’s Prime Minister General Prayut Chan-o-cha announced Thailand’s long-term development plan for the environment as well as cooperating with international agencies to support climate change solutions, setting a target of carbon neutrality within 2050 and net-zero emission within 2065 as the main ambitious goals.
Some may be wondering what is the difference between carbon neutrality and net-zero emission.
Carbon Neutral means the amount of carbon (carbon dioxide, CO2) being emitted is equal to the amount of carbon being absorbed from the atmosphere. Net Zero refers to when all greenhouse gases being emitted into the atmosphere are equivalent to the greenhouse gases being removed from the atmosphere on a global scale.
If any company has changed and developed its operations for the clean climate, but it is still not sufficient for a carbon neutrality target, the company can acquire carbon credit from other companies. Consequently, carbon credit trading is one of the most popular ways in the international market to race to net zero emission.
Mr. Disathat Panyarachun, Senior Executive Vice President, International Trading Business Unit, PTT Public Company Ltd., reveals that PTT has studied and explored international business opportunities for carbon neutral cargoes. The first carbon offsetting activity is applying green bunker fuel to PTT’s time charter vessel, TMN Plenitude, Thai flag, aframax 105,860 DWT (Deadweight Tons) which is used to transport petroleum in the Gulf of Thailand to domestic refineries. According to the European Union’s standard accepted by the International Maritime Organization (IMO), one metric ton of bunker will release CO2 around 3.151 metric tons after combustion. TMN Plenitude requires bunker fuel around 800 metric tons. Thus, carbon offsetting for the bunker fuel is approximately 2,520 metric tons CO2e. Carbon credit can be acquired by means of over-the-counter (OTC), pricing depends on types of carbon credit projects. The seller transfers carbon credits from its account with Verified Carbon Standard (Verra), a world-class carbon credit institution which is widely accepted. When the vessel is bunkered, carbon offsetting volume and activity details have to be input into Verra online system in order to issue a carbon retirement certificate.
PTT’s first carbon offset transaction paves the way towards the new vision – Powering Life with Future Energy and Beyond. The green bunker deal has gained wide recognition in the international arena and attracts counterparties to explore more green business opportunity with PTT. In addition, PTT is proud to be a role model in endeavoring for a low-carbon society via carbon credit trading. Also, PTT reinforces environmental awareness and consciousness as well as encourages people to participate in environmental preservation activities. With regard to the aforementioned, PTT is confident and committed to achieve Thailand’s climate policy target, being a carbon neutral and net-zero emission society for sustainability.
Bibliography
“What’s the difference between carbon neutral and net zero?”. (Online). Available https://ecometrica.com/carbon-neutral-net-zero/, 2021.
Derivatives Trading Department, International Trading Business Unit, PTT PLC, “Carbon Offsetting for PTT’s Time Charter Vessel”. 2021.