Plant a tree & Earn money, Thailand’s Near Future, with the Carbon Credit trading market

**Global warming has become a mainstream matter that the whole world has to pay attention to. In the past, you might think that global warming is something far from your daily. But now the environmental impact creates negative changes in human life.

**The term of “Carbon Credit and Carbon Footprint” has started to be mentioned more and more these days. Then, what is it?? How important it is?? Especially future business owners will have to get involved with this term.

** And the man who can explain this clearly is Varawut Silpa-archa, Minister of Natural Resources and Environment of Thailand. He would clarify about Carbon Credit in terms of trade, whether buying or selling with a Win-Win strategy.

Especially after the Covid-19 era Every organization must push for a Sustainability management policy under the concept of ESG which consists of Environment, Social and Governance from now on. In response to the Sustainable Development Goals (SDGs) with the United Nations on Cooperation for Sustainability that many countries have joined, including Thailand, to mobilize energy to seriously focus on society and the environment along with their business development.

Year 2022 would be a key time when many countries work together to drive the world towards the Carbon Neutrality goal, where every country, every city and including business organizations must prepare and implement a plan to reduce greenhouse gas emissions or set a goal for carbon emissions equal to Zero within the year 2050 to keep the global average temperature from rising above 1.5 – 2 degrees Celsius.

One of the mechanisms that will play a role in reducing the amount of carbon from the global business sector is the Calculation of Carbon Credit from the manufacturing sector, in each industry which will set the standards for each type of industry that there is a limit.

For instant, a simple picture can be seen as follows:

image by Thomas O'Brien

Company A produces products by creating a carbon footprint of the whole process at 100 units.

Refer to … “Standard Carbon Footprint of product category A, defined by the government,
is 70 units.”

100 – 70 = Company A has -30 carbon credits

This negative 30 carbon credits could result in,

  1. Company A pays higher environmental taxes.
  2. Company A may not be able to export goods. to countries that have measures to discourage products that do not meet environmental standards.

Company A’s solutions to solve this problem are as follows:
1. Invest in improving quality, process, production technology to produce less carbon.

  1. Increase the potential of the carbon absorbing sector, such as create a forest plantation in Company A’s area.
  2. Buy Carbon Credits from the carbon trading market.

Fastest solution is “no. 3” where Company A has to spend money to solve the problem by purchasing Carbon Credits to compensate for its products to be lower than the specified standard until the remaining Carbon Credit value can be resold in the market.


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Another quick example,

TESLA, which makes electric cars that is environmentally friendly until there is an enormous amount of Carbon Credit remaining, and sell their own Carbon Credit to generate income up to 3.3 billion US dollars or about 100 billion baht in Thai currency.

Carbon Credit Market Opportunities will not fall with just any capital group with innovative environmental technology only but can also expand the opportunity to generate income to rural people through a network of community forests across the country that planted trees to expand the forest area as well. Therefore, in the future, planting and preserving trees tends to generate income and environmental benefits for Thai citizens than cutting.

Where in the world is Thailand Carbon Credit Trade Market?

Today, we will talk about international markets where in the world the carbon credit trading market has been used, moreover in the near future Thailand will be affected on the world trade stage, as many superpowers began to create more environmental conditions with trading partners with trade protection measures against trading partners that release greenhouse gas emissions (carbon dioxide, methane, nitrous oxide, or other related gases and etc.) exceeding the specified criteria with “Carbon Credit” as a measure.

Currently, the “Carbon Credit Market” can be divided into two groups; (1) Official Marketing Group and (2) Voluntary Marketing Group.


Please stay tune and we will take you to explore it in the next month episode.

If you find this article useful and like it, please leave us some comments at we would be very appreciated.


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Tags: Carbon credit, Carbon Footprint, environment, SDGs