Thailand is set to introduce exchange-based trading of carbon credits following approval from the Ministry of Finance to list them on the Thailand Futures Exchange (TFEX), marking a significant development in the country’s financial and environmental policy architecture.
Exterior of the Stock Exchange of Thailand building. Ai generated picture.
Under the revised framework, carbon credits will be recognised as a standalone commodity class on TFEX. Market participants will be able to trade contracts with either physical delivery or cash settlement, creating formalised mechanisms for price discovery and risk management in the domestic carbon market.
Finance Minister Ekniti Nitithanprapas said the move reflects broader changes in global derivatives markets. ‘Today, the global derivatives market is not limited to traditional assets but has evolved into new assets reflecting the “real world economy” and “new forms of risk,” ranging from carbon to digital assets,’ he said.
He added: ‘As Thailand moves towards a low-carbon and digital economy, having risk management tools and products that respond to these new economic opportunities is a crucial 'financial infrastructure.’
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The reform forms part of a wider upgrade of Thailand’s asset and derivatives framework, led jointly by the Ministry of Finance and the Securities and Exchange Commission (SEC). According to an official statement, the changes are intended to ensure domestic markets ‘keep pace with the changes in the global financial and investment world.’
A key adjustment involves reclassifying carbon credits from a reference variable to a deliverable reference product, enabling more sophisticated contract structures. The revised framework will also accommodate greenhouse gas emission allowances under Thailand’s forthcoming emissions trading system, as well as International Renewable Energy Certificates.
In addition, digital assets, including cryptocurrencies and digital tokens, will be permitted as reference assets. The framework will also expand index-linked reference variables to include foreign exchange rates, interest rates, freight rates and other commodity benchmarks.
The announcement follows national elections that returned Prime Minister Anutin Charnvirakul to office with a strengthened mandate. In parallel with debt relief measures, the Finance Ministry has outlined steps to modernise trading infrastructure and stimulate economic growth.
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As Thailand integrates carbon credits into its exchange-based trading infrastructure, the direction of travel is clear: carbon markets are maturing, institutionalising and becoming embedded within mainstream financial systems. In this evolving landscape, long-term value will depend not only on access to credits, but on their integrity, traceability and alignment with tightening standards.
Green Earth’s portfolio has been structured with this transition in mind, pairing scientifically robust project development with digital verification frameworks to deliver high-quality, nature-based removals and measurable ecosystem impact at scale. For sustainability leaders, developers and investors navigating this new phase of market development, the imperative is clear: move beyond observation and position capital where credibility, resilience and measurable environmental value converge.
