Carbon Pricing and Market Readiness in Thailand

Sasin Professor Dr. Nophea Sasaki explores Thailand’s commitment to achieving carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065, elevating the role of carbon pricing as a core policy instrument. This chapter presents an integrative review of Thailand’s readiness to implement and harmonize three key carbon pricing tools: a carbon tax, an emissions trading system (ETS), and voluntary carbon markets. Anchored in institutional theory, policy integration theory, and strategic alignment theory, the analysis draws on policy documents supplemented by qualitative stakeholder surveys collected via a series of lectures during March–June 2025. It evaluates legal frameworks; institutional capacities; monitoring, reporting, and verification infrastructure; climate finance readiness; and external pressures such as the EU Carbon Border Adjustment Mechanism and Article 6 of the Paris Agreement. We found that while Thailand has made initial progress—such as enacting a carbon tax and piloting ETS design—significant gaps remain in enforcement, institutional coordination, and market interoperability. To address these challenges, it is important to enhance coherence, transparency, and international alignment, offering guidance for Thailand and similar emerging economies transitioning from voluntary initiatives to compliance-driven climate action. The full article is available through Taylo & Francis Group.