Upgrading Thai Capital Market: Cabinet Approves Carbon Credits and Digital Assets Trading on TFEX

Ekkanit Nitithunprabhas, Deputy Prime Minister and Minister of Finance, revealed that the Cabinet has approved a proposal from the Ministry of Finance and the Securities and Exchange Commission to add new reference assets for trading on the Thailand Derivatives Market (TFEX). The new assets include carbon credits, clean energy certificates, greenhouse gas emission rights, and digital assets, with the goal of preparing for a green economy and bringing Thailand's capital market up to international levels. The next step will be for the SEC committee to determine the details, rules, and trading formats for these new derivatives. Ekkanit noted that Thailand's carbon credit market is currently small and priced lower than international markets, as there are no mandatory measures like those in Europe or Japan. However, Thailand has previously approved a draft global warming reduction bill, which will be a crucial mechanism for establishing mandatory pricing in the future. The mechanism is expected to indirectly support reducing PM2.5 issues by encouraging carbon emission reductions as part of overall environmental problem-solving.