Thailand FTI, DENSO and CEP sign up for renewable energy trading project
From：Taiwan Trade Center, Bangkok
A letter of intent (LOI) for a new pilot project advocating responsible energy trading was signed by the Federation of Thai Industries (FTI), the DENSO group and the Clean Energy for People Foundation (CEP) on 25 August 2021.
The pilot project will focus on the trading of renewable energy to support current business trends and will be available in selected areas between 2022- 2025. Along with its aim to encourage the restructuring of Thailand’s energy administration, the project will also introduce an energy reformation plan to adapt to new regulations from the global community, such as the EU’s Carbon Border Adjustment Mechanism (CBAM).
The LOI is dependent on the cooperation of all three entities to promote and support greenhouse gas reductions. The FTI has formed the Greenhouse Gas Reduction Working Group, responsible for co-operating with the Energy Regulatory Committee (ERC), to push the pilot project. DENSO, which is committed to the total use of renewable energy by 2035, will focus on a feasibility study to test their readiness for participation in the project. The CEP is to provide initial consultations on the restrictions regarding the project. As such, the CEP aims to promote, educate the public, as well as encourage community-government relations.
The FTI’s Greenhouse Gas Reduction Working Group will also push for a greenhouse gas emission trading market for parties to sell or offset carbon generated by their business activities. In addition, a digital trading platform is ready to be registered with relevant agencies such as the Thai Greenhouse Gas Management Organization (TGO).
Attendees at the signing included Dr. Suvit Toraninpanich, Chairman of FTI’s Greenhouse Gas Reduction Working Group, Mr. Natee Sithiprasasana, Vice Chairman of the CEP Foundation and four DENSO group representatives.
According to Kawin Thangsupanich, Secretary to the Ministry of Energy, who acted as a witness to the signing, Thailand’s Nationally Determined Contribution (NDC) during 2021-2030, is set to 20-25%, under normal conditions, as part of the Paris Agreement on climate change.