Climate change has shifted from being a subject of policy discussion to becoming central to the global economic system in recent years.
What was once viewed merely as an environmental issue has now become a key determinant shaping trade, investment and national competitiveness, particularly as mechanisms such as the European Union's Carbon Border Adjustment Mechanism are in place.
This shift did not happen overnight. In Thailand, early groundwork was laid in 2021 with the establishment of the Thailand Carbon Markets Club (TCMC) under the leadership of Bangchak Group chief executive Chaiwat Kovavisarach, as part of efforts to prepare for emerging carbon-related trade measures such as the European Union's Carbon Border Adjustment Mechanism.
At a time when carbon markets were still largely viewed as voluntary mechanisms, the initiative focused on building early understanding and market readiness.
Carbon-related issues, notably greenhouse gas emission management through carbon markets, have become a decisive factor shaping the economic and environmental policy directions of Thailand and Southeast Asian nations.
"Carbon markets are no longer a distant policy concept. They are rapidly becoming a new form of economic infrastructure," said Gloyta Nathalang, chair of Thailand Carbon Markets Club and Bangchak Corporation's senior executive vice-president for sustainability management and corporate communications.
Mrs Gloyta, Bangchak's senior executive vice-president and chair of the Thailand Carbon Markets Club.
NEW MARKETS
Carbon markets have evolved from voluntary mechanisms into foundational systems that support decarbonisation, Mrs Gloyta said.
A functioning carbon market requires more than the buying and selling of credits; it depends on credible systems for measurement, reporting and verification, cross-border data interoperability and strong governance frameworks.
Without these elements, carbon markets cannot effectively deliver real emissions reductions, she said.
Across Southeast Asia, significant progress is already underway. Singapore has taken the lead by implementing a carbon tax and developing the Climate Impact X platform.
Indonesia has launched a carbon trading system for the power sector and is expanding participation to other industries.
Vietnam has begun piloting an emissions trading scheme, while Thailand and Malaysia continue to strengthen regulatory and institutional frameworks to support future market mechanisms.
"These developments signal a regional shift toward more structured and credible carbon markets," Mrs Gloyta said.
GAINING MOMENTUM
The development of the carbon market in Thailand is making good progress, driven by TCMC.
Established by Bangchak, its power generation arm, BCPG, and nine other founding organisations, TCMC aims to support the development of voluntary carbon markets, enhance understanding of carbon accounting, and provide a platform for cooperation among stakeholders.
Mrs Gloyta said TCMC has played an important role in building awareness, facilitating carbon credit trading and supporting the development of tools for assessing both organisational and individual carbon footprints.
Carbon credits are being traded on Carbon Marketplace, a platform facilitating buying and selling of carbon credits without a purchase fee.
"So far 1.7 million tonnes of carbon dioxide equivalent have been traded across 40 traders," Mrs Gloyta noted.
They are companies from such organisations as RE100, a global renewable energy initiative under which member companies commit to using 100% renewable energy.
TCMC is also promoting tools to assess the carbon footprints of businesses and individuals. Up to 45 companies have joined this initiative, she said.
One is Bangchak, which evaluates carbon dioxide emissions from its businesses, including filling stations. Even senior executives of the company are urged to gauge how much carbon dioxide they emit from daily activities through the "MyCF" app.
Executives exceeding acceptable carbon limits can offset emissions by buying credits from renewable energy or afforestation projects.
Olympic badminton players Kunlavut Vitidsarn and Ratchanok Intanon -- who serve as Bangchak's ambassadors campaigning for carbon dioxide reduction -- also use MyCF.
"In fact, if everyone, including Bangchak employees, keeps themselves in line with the carbon dioxide emissions campaign every day, their acts may be more powerful than brand ambassadors who work for companies only for a certain period," Mrs Gloyta pointed out.
INTERNATIONAL EFFORTS
TCMC expanded its role beyond the national level in 2024 by becoming a signatory to the Asean Common Carbon Framework (ACCF), marking a significant step in supporting international campaigns against global warming, Mrs Gloyta said.
Established through a memorandum of collaboration at COP29 in Azerbaijan involving TCMC, the Indonesia Carbon Trade Association, the Malaysia Carbon Market Association, the Asean Alliance on Carbon Markets and the Singapore Sustainable Finance Association, the ACCF provides a structured platform to promote alignment, interoperability and mutual recognition of carbon market mechanisms across the region.
The framework aims to support the harmonisation of standards, facilitate cross-border carbon transactions and strengthen regional market integration in line with international frameworks such as Article 6 of the Paris Agreement.
In parallel, the High-Integrity Asean Carbon Initiative (HACI) was established as a government-led framework to strengthen the integrity of carbon markets across the region, Mrs Gloyta said.
HACI focuses on enhancing regulatory coherence, improving institutional capacity, and ensuring the credibility of carbon market mechanisms. Through coordinated efforts among Asean member states, HACI seeks to reinforce trust, transparency and consistency in regional carbon market development.
In addition, mechanisms under Article 6 of the Paris Agreement have opened pathways for countries to link carbon markets and transfer emission reduction outcomes across borders in an official and transparent manner.
Such cooperation has begun to take shape through bilateral initiatives, including partnerships between Japan and countries in Southeast Asia, which have helped build practical experience in the development of regional carbon markets, Mrs Gloyta explained.
As Asean's carbon markets continue to evolve, the region is moving from fragmented national approaches toward greater coordination and interoperability.
This shift is being reinforced by external developments such as CBAM, which is reshaping global trade by embedding carbon considerations into market access.
In this context, frameworks such as the ACCF and the HACI serve not merely as policy responses, but as practical mechanisms to help Asean economies align standards, strengthen credibility and participate more effectively in an increasingly carbon-conscious global economy.
By building interoperable systems and shared governance foundations, the region can turn the challenge of decarbonisation into a strategic opportunity for long-term competitiveness, Mrs Gloyta said.
