How NetZeroCarbon REC Trading is Accelerating Thailand’s Push Toward Carbon Neutrality

Thailand is one of the top ten countries in the world most affected by climate change, alongside the likes of Vietnam, Myanmar and the Philippines, according to the Global Climate Risk Index compiled by Germanwatch, an environmental group.

The annual mean temperature in Thailand increased by one degree Celsius between 1981 and 2007, according to data from the Department of Meteorology of Thailand. One of the biggest dangers that climate change poses to Thailand is the rise in sea levels. The increase in floods in Thailand is, of course, the most direct and noticeable effect we can observe.

The sea level is expected to rise by one metre in the next 40 to 100 years, according to the Thai Office of Natural Resources and Environmental Policy and Planning. More than 11 million Thais, or 17% of the country’s total population, will be directly impacted. Bangkok might be submerged by 2030, according to Thailand’s National Reform Council, if immediate action is not taken.

To tackle this issue, Thailand has set out a comprehensive roadmap to eventually reach carbon neutrality by 2050. The Southeast Asian nation aims to reduce GHG emissions by 40% with international support by 2030. Then, it aims to have 69% share of EV by 2035. The country aspires to achieve net zero GHG emissions by 2065.

The Road to Net Zero

The road to net zero is not a single path. Instead, we need to take a multi-faceted approach. I summarize the different methods into two words: Reduce and Remove.

Do note that we are not talking about reduce then remove. Instead, we need to reduce AND remove simultaneously.

For example, we need to adopt technologies to reduce GHG emissions. We need to phase out inefficient and polluting fossil fuels. We need to scale up and implement carbon removal technologies. We can also offset carbon emissions with carbon credits and RECs.

So, what actually are RECs?

Renewable Energy Certificates (RECs), also referred to as Green tags, Renewable Energy Credits, Renewable Electricity Certificates, or Tradable Renewable Certificates (TRCs), are tradable, intangible energy certificates that serve as evidence that 1 megawatt-hour (MWh) of electricity was produced from a qualified renewable energy resource and fed into the network of power lines that transports energy.

Basically, if you own assets that generate renewable energy, for example solar power plants or wind power plants, you can sell them to companies which are trying to meet their climate goals but are unable to generate renewable energy on their own. You are getting paid, because you are indirectly generating renewable energy on their behalf.

A Thai Startup on a Mission

NetZeroCarbon will play an important role in helping Thailand reach its climate goals. The Thailand-based startup’s stated mission is to “be the largest carbon credit warehouse operator in Southeast Asia”, and to back this up, it possesses expertise in carbon offsetting, sustainability, verification processes and consultancy.

As of 2022, NetZeroCarbon has a total of nearly 2 million MWh of RECs in Southeast Asia, and is poised to add 8 million MWh more by 2026. For example, the company has a 29 MW solar power plant in Ha Tinh, a 48 MW wind power plant in Tai Tam, and a 51.2 MW wind power plant in Hoang Hai.

Companies’ Pain Points

Because carbon offset is a fairly new concept, a lot of companies which are trying to offset their carbon footprints are facing several pain points:

• Understanding how to monitor and determine budget for carbon offsetting initiatives
• Locating, sourcing and negotiating price for required carbon credits and RECs
• Individually approaching certified bodies to verify carbon credits purchased can prove to be quite a lengthy and difficult process
• Expertise and knowledge in road mapping along with detailed processes and procedures from documentation, reporting, verifying, retiring up until auditing

How NetZeroCarbon Helps

NetZeroCarbon helps companies which are feeling lost by providing support and guidance in three aspects:

• Sourcing
• Facilitating
• Investing

The business serves as a middleman and helps both buyers and sellers. For project developers in Southeast Asia, NZC streamlines the verification and validation procedures for carbon offsets on the seller’s side. Owners of hydroelectric, wind, and solar power plants frequently make up these project developers. The company recently acquired RECs across Southeast Asia and successfully verified them through strong collaborations with Certified Bodies (CBs), building up a backlog of RECs to be exchanged on their very own trading platform where businesses may transact in RECs in a transparent manner. On behalf of the buyer, NZC assists in determining the procedures for retiring carbon offsets that are the most effective and efficient.

The scope of NetZeroCarbon‘s consultation services include:

• Budgeting & planning
• Adoption of the BCG model
• Facilitation of verification for generators
• Carbon footprint calculation for baseline (CFP, CFO, CFR, CFE, CFS)
• Identifying efficiency initiatives (energy, water or waste)
• Sourcing of efficiency technologies
• Cost benefit analysis
• Sourcing of appropriate offsets
• Monitoring and reporting
• Offsetting and auditing
• Training and seminars

---

Summary

If you are a renewable energy asset owner:

You are probably looking for ways to sell your RECs. You can sell your RECs by providing some basic information to NetZeroCarbon. An expert will contact you to learn more about your requirements.

If you are a company that wants to fulfill your emission goals:

You are probably looking for ways to buy RECs. You can buy RECs by providing some basic information to NetZeroCarbon. An expert will contact you to learn more about your requirements.

To learn more about NetZeroCarbon, visit their website for more information.

Disclosure: ClimateTechReview is an affiliate of NetZeroCarbon. Any inquiries regarding buying and selling RECs in the Southeast Asian region can also be directed to ClimateTechReview. Our email address is hello@climatetechreview.com.