Biggest Thai Companies Aim To Create Carbon Trading Market


10 of Thailand’s largest and most successful companies, along with the state-owned power producer, have created their own voluntary emissions program that deals with offsets, a program they hope to build on to ultimately create a robust carbon trading market, Bloomberg reports.

These companies have built a framework based on the EU and Chinese markets where large emitters of greenhouse gases buy carbon credits to offset their emissions. The money earned would then be redirected to investments in green technologies and clean energy that would accelerate the country’s transition to renewable and sustainable energy practices.

Members of the Carbon Markets Club have pledged to trade over-the-counter credits in an attempt to bring about change in the energy sector. Members include Kasikronbank Pcl, Bangkok’s transit operator BTS Group Holdings Pcl, energy company Bangchak Corp and billionaire Dhanin Chearavanont’s Charoen Pokphand group. It started in June and has already traded around 15,000 tonnes of carbon dioxide in the form of credits.

“It’s a good small start that could have a snowball effect,” said Chaiwat Kovavisarach, CEO of Bangchak Corp. “Eventually, we can grow into a stock exchange” once the volumes are large enough, Kovavisarah said. 40 companies have expressed interest in being part of the club, and the Thailand Stock Exchange is receptive to the idea of ​​a permanent exchange.

The business move in Thailand is part of a global campaign to cut carbon emissions as industries and regulators seek to limit greenhouse gases. Thailand’s own carbon exchange is still a long way off as its current system has far more supply than demand, but it reflects an active interest in capping emissions.

KRBN invests in major carbon allowance markets

The KraneShares Global Carbon ETF (NYSE: KRBN) offers a unique approach to carbon credit trading.

KRBN tracks the IHS Markit Global Carbon Index, which tracks the world’s most liquid carbon credit futures contracts.

This includes the European Union (EUA), California Carbon Quota (CCA) and Regional Greenhouse Gas Initiative (RGGI) market contracts. North American pricing data is provided by IHS Markit’s OPIS service, while European prices are provided by ICE Futures Pricing.

KRBN invests in its futures contracts through a Cayman Islands subsidiary, which allows it to avoid handing out the dreaded K-1 tax form to its shareholders.

KRBN has an expense ratio of 0.78% and net assets of over $ 923 million.

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