Thailand's Sugar Industry Eyes Carbon Credits for Net Zero 2050
Thailand's sugar industry is deploying carbon credits, tracking systems, and carbon capture technology to become a national green industry model while meeting the country's Net Zero 2050 target, converting emissions into economic assets for
Industry Minister Verawut Silpa-archa announced that the Ministry of Industry is accelerating Thailand's sugarcane and sugar sector toward full green industry status by deploying carbon management, carbon credit trading, and carbon capture, use, and storage (CCUS) technology as key mechanisms to generate economic value and strengthen Thailand's competitiveness in the intensifying global green trade landscape. During a recent visit to a Thai sugar mill in Udon Thani, Silpa-archa emphasized that the industry has potential to become a national green industry model—not merely reducing greenhouse gas emissions, but converting carbon into economic assets that generate new income for farmers and businesses.
Current data shows Thailand's sugarcane cultivation sector emits approximately 25-30 million tons of CO2 equivalent annually, while sugar production releases another 10-15 million tons, totaling 35-45 million tons yearly. This makes the combined sector a major player in achieving the country's Net Zero Emissions target by 2050. The Ministry, through the Sugarcane and Sugar Board (SOSF), is rolling out a carbon tracking project along the entire production chain—from field to mill—to measure, verify, and report greenhouse gas emissions transparently and accurately. The ministry is also developing a carbon credit trading mechanism via the T-VER program to directly compensate farmers and businesses for carbon reduction.
Additionally, CCUS technology is being promoted for the sector, particularly converting captured carbon into biochar to enhance soil carbon storage and add value to agriculture. The ministry outlined six strategic directions to transition the industry toward a low-carbon future: establishing international standards for CCUS carbon credits, developing comprehensive carbon tracing systems, creating economic incentives through carbon credit markets, elevating sustainability standards according to Bonsucro and Sugar Ecolabel criteria, preparing for the EU's CBAM mechanism, and integrating the sugar industry into Thailand's 2050 Net Zero goal. Officials stressed that carbon will shift from a cost burden to an economic asset, requiring the sector to evolve from a major carbon emitter into a carbon value creator and green bioindustry pioneer.
