The Pathway to NDC and Carbon Neutrality: Roles of Optimum Degree between Marginal Abatement Cost and Social Cost of Carbon in the Thai Power and Industrial Sector

Abstract

Thailand has formulated its climate change policy and updated the relevant plans and policies to align with the goal of achieving carbon neutrality and net-zero greenhouse gas (GHG) emissions. This study investigated the optimal level of GHG mitigation in Thailand by taking into account the marginal abatement cost (MAC) and social cost of carbon (SCC). The research also evaluated how energy efficiency and renewable energy technologies could influence GHG reduction in the power and industrial sectors and illustrate policy recommendations that could be aligned with the 2020–2050 policy and plan period. The findings indicated that there could be instances where GHG mitigation potential would be insufficient to reach the national milestone. In such cases, it would become imperative to leverage all technologies within the marginal abatement cost curve (MACC) and also utilize the SCC for policy decision-making and meeting the desired goals. In certain scenarios, the adoption of additional technologies or measures would be necessary, such as flexible power generation and deploying carbon capture and storage or hydrogen, which are high-cost technologies. Furthermore, preparations should be made for multiple levels of climate change policies and plans beyond 2030.

Assessing the Additional Benefits of Thailand’s Approaches to Reduce Motor Vehicle Emissions

“…The NDC roadmap prioritises the transportation sector, aiming to improve transportation and logistics efficiency, develop low-carbon transport infrastructure, and incorporate sustainable practices to manage transportation demand. This involves not only reducing GHG emissions but also curbing air pollutants [42][43][44]. Therefore, to effectively tackle climate change and air pollution resulting from the rapid growth of urban traffic, it is crucial to evaluate the additional benefits of reducing GHG emissions and air pollutants in the urban transport sector.…”