Carbon Credits in Thailand: A 2026 Guide for Businesses and Investors

Carbon credits in Thailand have shifted from a niche sustainability idea to a live commercial opportunity. The Thai market stays voluntary today. Yet the legal architecture around it is maturing fast. A national credit standard now anchors the market, a futures market has opened, and the country’s first carbon-backed digital token has launched. Foreign investors, exporters, and multinationals increasingly need to understand how carbon credits in Thailand work in practice. This guide explains the current framework, the reforms ahead, and the practical steps that matter before you commit to a project or a transaction.

The State of Carbon Credits in Thailand Today

Thailand’s carbon credit regime remains entirely voluntary at present. No law currently obliges a business to buy or retire credits. Instead, corporate ESG strategy, supply-chain pressure, and reputational positioning drive most participation. Many companies also weigh it alongside the broader suite of green energy tax incentives in Thailand that reward lower-carbon operations.

The market is no longer marginal, however. The Thailand Greenhouse Gas Management Organization (TGO) reports that projects traded roughly 3.29 million tonnes of CO₂ equivalent under the domestic standard between 2020 and 2024. Those trades generated a cumulative value of about THB 314.5 million, or roughly USD 9.4 million, across more than 500 registered projects.

The T-VER Standard

The Thailand Voluntary Emission Reduction Program, known as T-VER, powers this market. The TGO administers it. Under T-VER, one carbon credit equals one tonne of greenhouse gas that a registered project reduces or removes from the atmosphere. Some Thai developers also register projects under international standards such as the Verified Carbon Standard or the Gold Standard. Even so, T-VER dominates the domestic landscape. The program now runs in two tiers. Standard T-VER serves the local market, while Premium T-VER aligns with Article 6 of the Paris Agreement and supports the international transfer of Thai-origin credits.

Key Takeaway: Buying or selling carbon credits in Thailand is currently optional, not mandatory. The T-VER standard, which the TGO administers, underpins the domestic voluntary market. Premium T-VER opens a route to internationally transferable, Paris-aligned credits.

From Voluntary Market to Compliance Market: The Draft Climate Change Act

The draft Climate Change Act is the most consequential development on the horizon. As of this writing, the bill is undergoing legal review before it reaches Parliament. In other words, it is proposed legislation, not binding law. Businesses should therefore treat its provisions as a signal of policy direction rather than a current legal obligation.

If Parliament enacts it in the expected form, the draft act would introduce a mandatory emissions trading system (ETS). Under an ETS, entities in designated high-emitting sectors receive emissions allowances. They must then surrender enough allowances to cover their verified emissions, and shortfalls attract penalties. Importantly, the draft would not force every company to buy credits. Instead, covered entities could use eligible carbon credits, such as those certified under T-VER, to meet only a limited, capped share of their obligation. Later subordinate regulations and allocation plans would fix the precise sectors, caps, and eligibility criteria. Those instruments do not yet exist.

For foreign investors, the strategic signal is clear even while the detail stays uncertain. Thailand is building a compliance market to sit alongside the voluntary one. That shift would widen the scope of regulation and, in all likelihood, lift demand for high-quality credits. Companies with material operations in Thailand’s energy sector, manufacturing, or heavy industry should track the bill closely.

Key Takeaway: The draft Climate Change Act is not yet law. It is expected to add a mandatory emissions trading system to the voluntary market. However, the covered sectors, allowance caps, and role of carbon credits will only crystallize once implementing regulations appear.

How Carbon Credits Are Issued Under T-VER

Generating credits under T-VER follows two clearly defined stages. Understanding both helps investors gauge the time, cost, and evidence the process demands.

Stage One: Project Registration

First, the project developer registers the project with the TGO. To qualify, the developer must show that the project sits within Thailand. The developer must also prove that the projected emission reductions are real, additional, and not already counted under another program. “Additional” is a critical concept. The reductions must go beyond what would have happened under a business-as-usual scenario. An independent, TGO-accredited assessor then evaluates the project, and the TGO’s board considers it for registration.

Stage Two: Credit Certification

Once the project operates, the developer reports the emission reductions or removals it actually achieved. An independent assessor verifies those results, and the TGO board certifies the corresponding credits. The TGO then records the certified credits in its official registry. At that point, they become tradable assets.

Trading Carbon Credits: OTC, the TGO Platform, and TFEX Futures

After certification, carbon credits in Thailand can change hands through several channels. Two routes are well established. Buyers and sellers either trade directly on an over-the-counter (OTC) basis, or they trade through the TGO’s own platform. So far, OTC deals dominate and account for more than half of all purchases. Any party that wants to hold or transfer credits must first open an account in the TGO’s carbon credit registry.

A Fast-Developing Market Infrastructure

The market infrastructure is expanding quickly. Following cabinet approval in February 2026, the Securities and Exchange Commission (SEC) issued a notification, effective 1 April 2026. That notification reclassified carbon credits as goods that can serve as underlying assets under the Derivatives Act. This change is now in force. It clears the way for carbon credit futures to trade on the Thailand Futures Exchange (TFEX), with either physical delivery or cash settlement. These steps reflect a wider ambition: Thailand wants to become a regional hub for carbon credit trading.

Key Takeaway: Certified credits trade OTC, on the TGO platform, and, following the SEC’s April 2026 reclassification, potentially through futures on TFEX. A TGO registry account remains a prerequisite for holding or transferring credits.

Tokenized Carbon Credits and Thailand’s Digital Asset Rules

Tokenization opens one of the more novel frontiers for carbon credits in Thailand. It represents a credit as a digital token on a blockchain. A developer can either “bridge” an existing registry credit on-chain, or issue the credit as a token from the outset. The token’s legal character then determines how heavily the law regulates it, and that character depends on the rights the token grants its holder.

The distinction matters a great deal. A token that merely represents a credit for retirement or offsetting, with no financial return, generally counts as a utility token. By contrast, a token that promises holders a financial return, such as a share of future credit sales revenue, usually qualifies as an investment token. Investment tokens fall within Thailand’s capital markets perimeter under the Emergency Decree on Digital Asset Businesses. As a result, they require SEC approval, a registration statement and prospectus, and distribution through an SEC-licensed ICO portal.

A concrete Thai example illustrates the point. In mid-2026, an SEC-licensed ICO portal launched what it marketed as Thailand’s first digital token backed by carbon credits. The token tracked mangrove reforestation credits and took the form of an investment token, offering returns linked to future credit sales over a multi-year term. Because it confers a financial return, that structure sits squarely within the securities-style regime rather than the lighter utility-token treatment.

Key Takeaway: Tokenizing carbon credits can pull a project into Thai capital markets law. If the token offers a financial return, regulators will likely treat it as an investment token. That triggers SEC approval, disclosure, and licensed-portal requirements.

Selling Thai Carbon Credits Internationally

Sellers can offer Thai carbon credits to foreign buyers, but the process depends on the buyer’s intended use. Where a private company simply wants credits for voluntary offsetting, the transaction stays relatively simple. The seller can cancel the credits in the TGO registry and issue a cancellation certificate. Alternatively, the foreign buyer can open its own TGO registry account. Neither route needs special TGO authorization, provided the buyer’s country accepts Thai-standard credits.

A stricter process applies when the credits will count toward another country’s emissions target under the Paris Agreement. In August 2025, Thailand’s cabinet approved a framework for these “international purposes” transfers. That framework requires authorization from the director-general of the Department of Climate Change and Environment (DCCE), plus a “corresponding adjustment” that stops the same reduction from counting twice. Foreign buyers pursuing Article 6 transfers should build this authorization step into their timelines.

Tax Incentives and the Foreign Business Act

Thailand actively encourages participation in the carbon market. Income from the sale of T-VER carbon credits may qualify for a corporate income tax exemption for a set number of accounting periods, subject to conditions under the Revenue Code and its subordinate legislation. Companies should confirm the current terms, because the government periodically renews and adjusts relief of this kind.

Foreign investors face an extra layer to consider: the Foreign Business Act (FBA). Depending on the underlying activity, some carbon projects fall within categories that Thai law reserves for nationals, particularly projects involving forestry or agriculture. The FBA may also treat the sale of carbon credits by a foreign entity as a restricted service business, which can require a Foreign Business License or another exemption. Structuring the project entity correctly at the outset therefore matters enormously.

Key Takeaway: A corporate income tax exemption can apply to T-VER credit sales. Foreign participants must also assess the Foreign Business Act, because forestry, agriculture, and credit-trading activities can trigger foreign-ownership restrictions that shape how the project should be structured.

Practical Steps for Foreign Investors and Businesses

The rules governing carbon credits in Thailand span several regimes, so a coordinated approach pays off. Before you commit capital or sign an offtake agreement, take these steps:

  • Map the applicable regimes. A single project can touch the T-VER framework, capital markets law (if tokenized), the Foreign Business Act, and the Revenue Code at once.
  • Confirm project eligibility early. Additionality and independent verification gate every T-VER project, so build them into the plan from day one.
  • Check the current status of the Climate Change Act. A compliance market would change demand and obligations, so track the bill and its future regulations.
  • Structure for foreign-ownership limits. Assess FBA exposure before you choose the entity that will develop, hold, or sell the credits.
  • Plan for international transfers. If credits are destined for use under the Paris Agreement, factor in DCCE authorization and corresponding adjustments.

Frequently Asked Questions

Are carbon credits mandatory for businesses in Thailand?
No. Carbon credits in Thailand are currently voluntary, and no law obliges a business to buy or retire them. This could change if Parliament enacts the draft Climate Change Act, which is expected to introduce a mandatory emissions trading system for designated sectors. Until that legislation and its implementing regulations take effect, participation stays a matter of corporate choice.
What is T-VER and who runs it?
T-VER, the Thailand Voluntary Emission Reduction Program, is the country’s principal domestic carbon credit standard. The Thailand Greenhouse Gas Management Organization (TGO) administers it. One T-VER credit represents one tonne of greenhouse gas that a registered project has reduced or removed. An independent assessor verifies each project, and the TGO records the credits in its registry.
Can a foreign company buy or sell carbon credits in Thailand?
Yes, foreign companies can participate, but they should assess the Foreign Business Act first. Certain project activities, especially in forestry or agriculture, and the sale of credits by a foreign entity may count as restricted businesses that require a Foreign Business License or an exemption. The right corporate structure depends on the specific activity, so legal advice before launch is prudent.
How are tokenized carbon credits regulated?
It depends on the token’s design. A token used only for offsetting or retirement, with no financial return, generally counts as a utility token. A token that offers a financial return, such as a share of future credit sales, usually qualifies as an investment token and falls under the Emergency Decree on Digital Asset Businesses. That regime requires SEC approval, a prospectus, and a licensed ICO portal.
Is there any tax benefit to selling carbon credits in Thailand?
Income from the sale of T-VER carbon credits may qualify for a corporate income tax exemption for a specified number of accounting periods, subject to conditions under the Revenue Code. Because the government periodically reviews and renews such incentives, businesses should confirm the exact terms and eligibility with a Thai tax adviser before they rely on them.
What changes if the Climate Change Act becomes law?
The draft act is expected to create a compliance market alongside the existing voluntary one, through a mandatory emissions trading system. Covered entities would receive allowances and could use eligible carbon credits to meet a capped portion of their obligations. Later regulations would define the affected sectors, caps, and rules, so the practical impact will become clear only once the government issues those instruments.

Planning a Carbon Credit Project or Transaction in Thailand?

Carbon markets sit at the intersection of environmental regulation, capital markets law, foreign-ownership rules, and tax. Lex Bangkok advises international businesses, investors, and developers on structuring compliant, commercially sound carbon credit projects and transactions in Thailand. Speak with our team to align your strategy with the current framework and the reforms ahead.

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Disclaimer: This article is for general information only and does not constitute legal advice. Several measures discussed, including the draft Climate Change Act and its emissions trading system, are proposed and not yet in force. The applicable rules for any specific carbon credit project may change as legislation advances. Businesses should obtain tailored legal advice before acting.