CARBON CREDIT: A policy to ensure safety for all users and the environment since the production process

At present, countries around the world are putting their focus on global warming. One thing claimed to be the most adverse cause of this phenomenon is the emission of greenhouse gas. Thus, shifting to environmentally-friendly materials, equipment, business operations, and employment of the Carbon Credit approaches is currently prioritized by the entire world. In order to satisfy the intent of the Paris Agreement executed on December 12, 2015, which is a legal instrument adopted under the latest UNFCCC framework, the world has established a mutual goal to reduce GHG emissions at prompt and create a balance for the environment while also transforming the construction industry to reflect the Carbon Credit ideology and be eco-friendly based on the Net Zero effort in the long run.

Up to now and in the near future, every country, every sector, around the world has been and will be prioritizing the eco trends more and more. Definitely, the manufacturing and construction sectors are included, as they are considered the key players that contribute to the impacts on the environment, whether it is the air or nature.

In addition to Carbon Credit, the countries also execute environmental policies with aims to inspect and monitor products, materials, processing, and importation of goods to ensure that all the procedures resonate with the applicable policies and are environmentally-sound. These policies are such as Singapore’s Green Plan, South Korea’s Green New Deal, Japan’s Green Growth Strategy, environmental policies implemented by the European Union.

Therefore, it is super important for project owners and manufacturing sectors that wish to expand their market or upgrade their operations to the global arena. Compliance with these environmental policies and adhering to Carbon Credit will open up more opportunities and facilitate penetration to new markets. Moreover, it is another way to protect the environment.

European market and the European Green Deal policy: A challenge for Thai materials and manufacturing
The European Union is a crucial market for the growth of green products. According to the European Green Deal policy, there are three main goals that apply Carbon Credit, including the use of renewable resources, net-zero, and non-toxic environment. Key factors that affect the industrial sector and products exported by Thailand are the requirements that need all goods brought from outside of the EU to be considered and charged for carbon credits in accordance with the CBAM to ensure that all goods and materials were manufactured with low GHG emitted. The first product groups to be under this criteria are electrical services, cement, fertilizers, iron and steel, and aluminum.

Carbon Credit will be proportional to the amount of greenhouse gas each plant generates; therefore, the producer or project owner is required to keep their carbon emission as low as possible to make sure that the Carbon Credit will be low as well. The more entrepreneurs in Thailand can produce and export products that comply with these environmental policies, the higher benefits they gain from foreign markets and investors, especially those in the EU. This is considered a vital change, starting from the production process, which helps create safety for all users and preserve the environment concurrently in a sustainable way.

Carbon Credit: Benefits for all parties

It is noticeable that many countries have enforced policies that involve Carbon Credit. It is a new way to do business and gain more recognition from abroad. As a result, you all are suggested to learn more about this Carbon Credit to prepare for the future.

Carbon Credit originated from the Tokyo Protocol in 1997, which is an obligation agreed between large industrial nations around the world at that time to reduce emissions of greenhouse gas, including Carbon Dioxide, Methane, Nitrous Oxide Sulfur Hexafluoride, etc. The amount of greenhouse gas emissions allowed is determined each year and all operating manufacturing plants are responsible to develop and improve their process to meet the goals set. Certainly, forcing these plants to stop the emission immediately is not possible. The Carbon Credit Policy hence makes the obligation under the
Tokyo Protocol flexible and doable.

Carbon Credit is a guarantee that the amount of greenhouse gas will be reduced or absorbed during the production or operation process of an industrial plant. No matter it is a larger or smaller amount, the reduced amount of greenhouse gas can be traded as credits for factories in developed countries in order to control the amount of greenhouse gas emissions. Importantly, this approach is truly considered a cooperation to mitigate environmental impact at the same time.

Change your perspective, increase your Carbon Credit and enhance your chances.

Carbon Credit can be measured or obtained via two methods, namely, converting to a green factory using clean energy and renewable energy throughout the buildings and workflows (Clean Development Mechanism (CDM)), which also encompasses systematic and correct wastewater treatment and waste management; another way to obtain carbon credits is to trade a permit for greenhouse gas emissions or carbon credits with other establishments. This way permits large factories to emit more GHG while their smaller counterparts will stay environmentally friendly and generate income from the trade of such carbon credits.

Thailand Greenhouse Gas Management Organization has developed a system to measure the amount of greenhouse gas in both direct and indirect production to obtain the data of GHG emissions. Additionally, it also prepared a T-VER project that allows Thai entrepreneurs to use Carbon Credit or pay for carbon at the source of production in Thailand, simplifying carbon management when cargo reaches a specific destination. Moreover, the organization is also working to make sure that the T-VER program is universal and in line with international environmental policies. Therefore, not only do the benefits of Carbon Credit increase opportunities for industrial products, but they also help regulate the production process to be more environmentally friendly.