Bangkok: 8 March – Krungthai COMPASS recommends raising the level of Thailand’s rubber industry to international standards. Responding to the policy of promoting carbon credit sales in rubber plantations, it is expected that by 2025 there will be at least 87,000 rai of rubber plantations registered as T-VER reduction projects.
Krungthai COMPASS revealed that Thailand is the world’s number 1 rubber producer. According to the Bureau of Agricultural Economics, in 2023, Thailand’s rubber production was 4.7 million tons, or a share of 31.5% of global rubber production. However, Thailand’s rubber industry Thailand faces the risk of declining export volumes. However, amidst the global conservation trend, the Thai government has seen an opportunity to raise the income levels of Thai rubber entrepreneurs. Therefore, there is a policy to promote the sale of carbon credits in rubber plantations.
Krungthai COMPASS estimates that selling carbon credits in rubber plantations can increase gross profit margins for operator
s as high as 6.2% if they receive support for expenses from the government. By 2025, it is expected that there will be rubber plantations. That is registered as a voluntary greenhouse gas reduction project according to Thailand’s standards, or the T-VER project, with an area of at least 87,000 rai, which has the potential to absorb greenhouse gases of approximately 366,626 tCO2eq/year. Under the support of the government sector, it is expected that there will be more rubber plantation areas joining the project in the future Therefore, it is considered an opportunity for rubber entrepreneurs who are project developers and those who want to purchase carbon credits.
Krungthai COMPASS recommends that large entrepreneurs who are ready should accelerate project development. Including considering using carbon credits received to compensate for the organization’s greenhouse gas emissions. while small farmers and SMEs may carry out projects in the form of grouping together in the area. so that the cost per unit
in p
roject development decreased The government sector should play an important role in continuously pushing for carbon credit projects in rubber plantations. As well as supporting the development of projects to meet international standards.
This should start by creating awareness of business opportunities from participating in the T-VER project and getting carbon credit certification. Including providing assistance in knowledge, funding, and there should be clear guidelines for long-term support. To ensure continuity and be able to raise project standards to the international level, such as allocating a regular budget for a carbon credit management project in rubber plantations. Support the integration of rubber plantations in dense rubber plantation areas. To reduce the cost per unit As well as collaborating with financial institutions to provide loans to interested farmers and rubber entrepreneurs. etc.-516-Thai News Agency
Source: Thai News Agency