Thailand joins global aviation carbon offset scheme, enabling emission reductions – Nation Thailand

Report on Carbon Credit Certification and Market Dynamics in Alignment with Sustainable Development Goals

Certified Project Categories for Climate Action (SDG 13)

A total of eleven project types have been certified as eligible for participation in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). These projects represent a broad range of activities that contribute directly to multiple Sustainable Development Goals (SDGs), with a primary focus on Climate Action (SDG 13).

1. Renewable Energy Generation for Grid Supply: Advances SDG 7 (Affordable and Clean Energy).
2. Renewable Energy Generation for Self-Consumption: Supports SDG 7 and promotes energy independence.
3. Biomass Cogeneration for Electricity and Thermal Energy: Contributes to SDG 7 and SDG 12 (Responsible Consumption and Production) by utilizing waste streams.
4. Conversion to Electric Vehicles: Promotes SDG 11 (Sustainable Cities and Communities) by reducing urban pollution.
5. Community Waste Management: Directly supports SDG 11 and SDG 12 by diverting waste from landfills.
6. Methane Capture from Anaerobic Wastewater Treatment: Addresses SDG 6 (Clean Water and Sanitation) and mitigates potent greenhouse gases.
7. Forest Planting (excluding wetlands): A key initiative for SDG 15 (Life on Land).
8. Mangrove Planting: Supports both SDG 14 (Life Below Water) and SDG 15.
9. Mangrove and Seagrass Restoration: Crucial for biodiversity and coastal resilience under SDG 14.
10. Forest Management Improvements: Enhances the capacity of forests as carbon sinks, contributing to SDG 15.
11. Sustainable Agricultural Land Management: Promotes SDG 2 (Zero Hunger) and SDG 15 through climate-resilient agriculture.

Global Market Analysis and Supply-Demand Imbalance

The global demand for carbon credits under CORSIA Phase 1 is significant, with the International Air Transport Association (IATA) projecting a need for 146 to 236 million tons of CO2 equivalent (MtCO2eq). However, the current market supply is limited, creating a notable imbalance. This gap highlights the urgent need to scale up projects that support global climate goals.

• Projected Demand (CORSIA Phase 1): 146 – 236 MtCO2eq
• Current Market-Ready Supply (Examples):
  • Guyana’s REDD+ Programme: 4.64 MtCO2eq
  • Biomass Projects: 1.5 MtCO2eq
  • Cookstove Projects: 0.18 MtCO2eq

Economic Implications and Domestic Opportunities for Thailand

The carbon credit market presents a substantial economic opportunity, with futures trading data indicating prices between US$15 and US$21 per ton of CO2 equivalent. For Thailand, this translates into a chance to foster domestic economic growth (SDG 8) and build effective public-private partnerships (SDG 17).

Discussions between the Thai airline association and the Thailand Greenhouse Gas Management Organisation (TGO) have revealed a domestic demand forecast of over 400,000 tCO2eq over three years from five member airlines. By supplying this demand with domestic Premium T-VER credits, Thailand can achieve the following:

• Prevent a capital outflow of US$6 million to US$8.4 million (approximately 192 million to 268.8 million baht).
• Stimulate investment in local green projects that align with the nation’s SDG commitments.
• Strengthen the national framework for climate action and sustainable development.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy
• SDG 11: Sustainable Cities and Communities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 14: Life Below Water
• SDG 15: Life on Land
• SDG 17: Partnerships for the Goals

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 7: Affordable and Clean Energy

  • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article directly mentions projects like “Renewable energy electricity generation for grid supply,” “Renewable energy electricity generation for self-use or direct sale,” and “Electricity and thermal energy cogeneration from biomass” as types eligible for carbon credits, which promotes the use of renewable energy.

• SDG 11: Sustainable Cities and Communities

  • Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management. The article lists “Community waste management to replace landfill disposal” as a certified project type, directly addressing municipal waste management to reduce environmental impact.

• SDG 12: Responsible Consumption and Production

  • Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. The project type “Community waste management to replace landfill disposal” and “Methane capture from anaerobic wastewater treatment” imply better management and reduction of waste, aligning with this target.

• SDG 13: Climate Action

  • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The entire article revolves around the CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) scheme and Thailand’s T-VER credits. This demonstrates the integration of climate change measures (carbon offsetting) into the aviation industry’s policies and national strategies like those managed by the Thailand Greenhouse Gas Management Organisation (TGO).

• SDG 14: Life Below Water

  • Target 14.2: By 2020, sustainably manage and protect marine and coastal ecosystems… and take action for their restoration. The article identifies “Mangrove and seagrass restoration” as a certified project type for carbon credits, which directly contributes to the restoration of coastal ecosystems.

• SDG 15: Life on Land

  • Target 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally. The article highlights several relevant project types, including “Forest planting (excluding wetlands),” “Mangrove planting,” “Forest management improvements,” and Guyana’s “REDD+ (Reducing Emissions from Deforestation and Forest Degradation) programme.”
  • Target 15.3: By 2030, combat desertification, restore degraded land and soil… and strive to achieve a land degradation-neutral world. The mention of “Sustainable agricultural land management” as a project type supports efforts to restore and sustainably manage land.

• SDG 17: Partnerships for the Goals

  • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships. The article describes the collaboration between the International Air Transport Association (IATA), the Thai airline association, and the Thailand Greenhouse Gas Management Organisation (TGO) to meet the carbon credit demands for the CORSIA scheme. This is a clear example of a multi-stakeholder partnership to achieve a common sustainability goal.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• The primary indicator mentioned throughout the article is the volume of carbon credits, measured in tons of CO2 equivalent (tCO2eq) or million tons of CO2 equivalent (MtCO2eq). This metric quantifies the reduction or removal of greenhouse gases, directly measuring progress for climate action (SDG 13) and the environmental impact of projects under SDGs 7, 11, 12, 14, and 15. Specific figures mentioned include:
  • Global demand for CORSIA Phase 1: 146 to 236 MtCO2eq.
  • Supply from Guyana’s REDD+ programme: 4.64 MtCO2eq.
  • Supply from biomass projects: 1.5 MtCO2eq.
  • Supply from cookstoves projects: 0.18 MtCO2eq.
  • Demand from five Thai airlines: over 400,000 tCO2eq.
• Another key indicator is the financial value of carbon credits and the economic impact of the carbon market. The article provides:
  • Price of carbon credits: US$15 to US$21 per ton of CO2 equivalent.
  • Potential economic benefit for Thailand: Preventing an outflow of US$6 million to US$8.4 million by selling domestic credits. This serves as an indicator for the mobilization of financial resources for sustainable development (related to SDG 17).
• The number of certified project types (11 are listed) and the number of participating entities (e.g., “Five member airlines”) can serve as implicit indicators for the scale and scope of partnerships and climate action initiatives (SDG 17 and SDG 13).

4. Summary Table of SDGs, Targets, and Indicators

Source: nationthailand.com