Investing in carbon reduction labels for business growth

        In the 13th National Economic and Social Development Plan 2023-2027, the 10th goal is for Thailand to have a "Circular Economy and Low-Carbon Society," which means that Thailand aims to increase the use of renewable energy to not less than 25 percent of total energy use, and it has a goal to increase the amount of reused waste to not less than 40 percent of the total amount of waste by the year 2027. It also set the goal to reduce the amount of waste per capita in 2027 by 10 percent (from 2017 levels).

        Another effective tool is to use carbon-reduction labels, which offer consumers new options for purchasing goods and services, encouraging manufacturers to improve their production processes and, raw material acquisition, and to produce products that emit less greenhouse gas. Moreover, manufacturers can reduce production costs by making the production process more efficient, reducing the use of fossil fuels, and increasing the use of renewable energy, as well as showing their intention to be socially responsible and creating a good image for the company. This is especially the case when the product has been approved and registered for the carbon reduction label. It will be a new way for both domestic and international consumers to buy products.

        In the European Union, the European Green Deal has been implemented, which will adjust the price of carbon before crossing the border (Carbon Border Adjustment Mechanism, or CBAM), coming into full effect by 2026. This will affect the price of goods imported from abroad, as prices must reflect the actual carbon emissions generated by the production process.

        Many countries in Asia have begun to fully implement environmental measures and reduce greenhouse gas emissions, such as Singapore's Green Plan policy, South Korea's Green New Deal policy, and Japan's Green Growth Strategy. Investing in carbon reduction labels is considered a good alternative for manufacturers who want to expand their business to keep up with the global trend towards eliminating greenhouse gas emissions.

        In this regard, applications for carbon reduction label registration are divided into three categories: production process consideration type, contract manufacturer type, and product life-cycle process type, with different fees depending on the type. The lowest rate is 50,000 baht and the highest rate is 120,000 baht per type of product or service. Interested entrepreneurs may contact the Thailand Environment Institute or check details on the website: www.tei.or.th.

Source: UNDP Thailand
Tel: +66 2 288 3350