Thailand Drafts Climate Change Law, Introduces Carbon Tax

The Thai government announced plans to impose a carbon tax and an emissions‑trading system as part of the country’s first climate‑change law. The announcement was made in Bangkok on Monday, 8 December 2025.

The draft law has been approved by all cabinet ministers and is designed to meet UNFCCC commitments, targeting carbon neutrality by 2050 and net‑zero emissions by 2065. A carbon tax of THB 200 per tonne will apply to fossil‑fuel producers, power generators, manufacturers, agriculture and food‑and‑beverage firms, while the emissions‑trading mechanism awaits parliamentary approval.

The tax will be collected by the Customs Department and integrated into the existing fuel tax, so retail gasoline and diesel prices are not expected to rise. The measures aim to channel green investment and accelerate Thailand’s transition to a low‑carbon economy.