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The Climate Change Act and the New Role of Engineering Consulting Businesses as Leaders in Low Carbon Solutions
By Dr. Supattana Wichakul
The subject of climate change has gained international attention, and Thailand is making significant efforts to reduce greenhouse gas emissions while improving its capacity to adjust to the rapidly changing climate. Thailand is now set to implement the Climate Change Act, expected to take effect in 2025.
The Climate Change Act serves as a legal framework to guide Thailand’s initiatives in reducing greenhouse gas emissions, strengthening national resilience to climate change impacts, and fostering participation across all sectors. This legislation aligns with the Paris Agreement (2015) and establishes clear, systematic measures for Thailand to achieve Net Zero emissions, in accordance with its international commitments.
Businesses, organizations, and industries that are involved in greenhouse gas emissions will be directly impacted by the implementation of this law. However, it presents an opportunity for consulting firms that focus on energy and environmental solutions to assist organizations properly adjust to and comply with the new regulations.
Key Aspects of the Climate Change Act consists of 14 main chapters, covering critical areas as follows:
Chapter 1: General Provisions
Defines key terms and fundamental principles regarding climate change, including public rights to access information and participate in climate governance.
Chapter 2: Thailand’s Climate Action Targets
Sets goals such as Carbon Neutrality by 2050 and Net Zero emissions by 2065.
Chapter 3: National Climate Change Policy Committee
Establishes a national committee responsible for policy formulation, action planning, and international collaboration.
Chapter 4: Climate Fund
Creates a fund to support emissions reduction projects, research, technology development, and financial incentives for transitioning to a low-carbon economy.
Chapter 5: National Climate Adaptation Master Plan
Outlines policies and guidelines for government agencies to align with national climate mitigation and adaptation goals.
Chapter 6: Greenhouse Gas Data Management
Develops a national greenhouse gas database for tracking, calculating, and managing emissions effectively.
Chapter 7: Greenhouse Gas Reduction Measures
Implements strategies using economic tools, clean technology, and efficiency improvements in industry and energy sectors.
Chapter 8: Carbon Trading System
Establishes a Carbon Trading Market with regulations for emissions allowances, trading mechanisms, and market oversight.
Chapter 9: Cross–Border Carbon Pricing Mechanism
Introduces a Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage and promote fair competition for domestic industries.
Chapter 10: Carbon Taxation
Imposes taxes on greenhouse gas emissions to fund carbon reduction initiatives and clean technology development.
Chapter 11: Carbon Credits System
Sets standards for certifying and trading carbon credits to support emission reduction projects.
Chapter 12: Climate Adaptation Measures
Develops strategies for disaster risk management, community resilience, and climate-proof infrastructure.
Chapter 13: Environmental and Climate–Sensitive Economic Activity Standards
Establishes criteria for classifying economic activities aligned with low-carbon and environmental sustainability goals.
Chapter 14: Penalties and Enforcement
Outlines penalties for non-compliance, including failure to report emissions, exceeding allowable limits, and tax evasion.
This Act establishes a comprehensive regulatory framework encompassing both the public and private sectors, ensuring accurate, transparent, and internationally verified greenhouse gas reporting. Compliance will significantly impact business opportunities, particularly for consulting firms.
One of the key aspects of this Act is the establishment of a greenhouse gas reporting and verification system to ensure accurate data. This requirement impacts the private sector across all industries involved in greenhouse gas emissions. Consulting firms can play a crucial role in assisting private sector organizations in preparing corporate and product carbon footprint reports, as well as developing scientifically based emission reduction strategies that align with internationally recognized standards.
Furthermore, the Emission Trading System (ETS) and the Carbon Tax present opportunities for consulting firms to offer guidance on carbon credit management and strategic planning to minimize environmental compliance costs. These elements will enable businesses to meet regulatory requirements while enhancing their competitiveness in the global market.
The New Role of Engineering Consulting Firms as Leaders in Low Carbon Solutions
Climate change is not just an environmental issue; it is transforming business operations. Engineering and project management consultants must adapt from traditional practices to incorporate low-carbon strategies, such as:
· Construction Management Consultants – Traditionally, construction management consultants have focused on cost control and project quality. However, their role is now expanding to include Low Carbon Construction Consulting. This involves advising on material selection to reduce greenhouse gas emissions, such as using low-carbon concrete or recycled steel. Additionally, they can develop construction plans that minimize waste and optimize energy efficiency, contributing to more sustainable building practices.
· Industrial and Energy Consulting – Energy consulting firms can provide services related to energy efficiency improvements and the adoption of renewable energy in factories and buildings. These initiatives align with the carbon tax measures introduced under this Act, ensuring that industries comply with regulations while reducing their carbon footprint.
· Environmental Consulting and Carbon Credit Project Development – Under the Emission Trading System, consulting firms have opportunities to develop carbon credit projects, such as Reforestation Carbon Offset initiatives or clean energy transition projects. These efforts help businesses meet their carbon reduction targets while generating tradable carbon credits in the marketplace.
· Strategic and Financial Consulting – With the government establishing a Climate Fund to support investments in greenhouse gas reduction projects, consulting firms can assist private sector entities in accessing financial support. Additionally, they can provide guidance on investment strategies for environmentally sustainable businesses, helping companies navigate the transition toward a low-carbon economy.
The Climate Change Act is set to transform the way businesses operate in Thailand. Consulting firms will play a vital role in helping organizations adapt, comply with regulations, and maximize opportunities from this transition. With expertise in environmental management, energy solutions, and sustainability, consulting firms can support Thai businesses in growing steadily and sustainably, aligning with the global green economy while ensuring long-term resilience and competitiveness.