All Inspire Development Public Company Limited has announced its investment in the carbon credit business, signing a Memorandum of Understanding (MOU) to establish a carbon credit business in Thailand with global partner GSI, the owner of the world's first blockchain-based carbon credit trading platform, to facilitate the buying and selling of carbon credits in Thailand. The company aims to generate revenue of 2.044 billion baht within 5 years.

Mr. Thanakorn Thanavarith, CEO of All Inspire Development Public Company Limited, revealed that the company has signed an MOU to establish a carbon credit business in Thailand with global partner GSI, which owns the world's first blockchain-based carbon credit trading platform with an annual trading volume exceeding 100 million USD. 

 

 

All Inspire believes that the carbon credit business has a high profit margin of up to 60-70% and strong demand from international markets. The trading prices will primarily depend on customer demand. It is projected that by 2022, the company aims to achieve a trading volume of carbon credits of 1 million tons of CO2 equivalent, generating approximately 7 million baht in revenue.

Starting from the first quarter of 2023, the company plans to expand its business into the Global Market through partnerships, anticipating trading volumes through its Marketplace to reach

15.28 million tons of CO2 equivalent in 2023, generating approximately 331 million baht in revenue.

In 2024, this is expected to increase to 28.86 million tons of CO2 equivalent, generating around 886 million baht.

In 2025, it is projected to reach 44.95 million tons of CO2 equivalent, generating approximately 1,741 million baht.

And in 2026, it is expected to reach 50.77 million tons of CO2 equivalent, generating around 2,044 million baht.

All Inspire is the first investor in Thailand to enter the carbon credit business. The establishment of the new joint venture will include joint ventures in Thailand and Singapore to cover business operations both domestically and regionally. Currently, the company is accelerating the development of the infrastructure for the platform and related applications, with plans to launch a Marketplace/Platform for customers to access the platform. At the same time, it will continue to enhance efficiency and add various features. It is expected that by the fourth quarter, an Investment Fund will be established to further invest in this business, initially projected to require around 150 million baht to purchase carbon credits from small to medium-sized producers.

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About Carbon Credits

Currently, global warming is impacting lives worldwide, resulting from prolonged development and lifestyle choices that disregard environmental considerations. The effects are becoming increasingly severe. The mission to reduce greenhouse gas emissions is not the responsibility of any single agency but requires collaboration from all parties to achieve Net Zero, meaning no additional greenhouse gases are released into the atmosphere. This entails reducing emissions as much as possible and offsetting any remaining emissions. Under the Paris Agreement, which is a framework agreement under the United Nations Convention, measures to reduce carbon dioxide emissions are established.

As of April 2021, 195 countries have ratified the mission to reduce emissions, marking a positive sign towards preventing global temperatures from rising more than 2 degrees Celsius, and if possible, keeping it below 1.5 degrees Celsius. This is a mission that humanity must work together on: to halve greenhouse gas emissions by 2030 and achieve Net Zero by 2050.

Carbon credits are the tradable units representing the reduction of greenhouse gas emissions below targets in various locations, functioning as a commodity that serves as a license for trading that grants the right to emit carbon dioxide or other greenhouse gases into the environment in terms of tons of CO2 equivalent.

Carbon credits are a crucial mechanism for achieving the Net Zero mission, providing incentives for businesses to cooperate in reducing greenhouse gas emissions. Businesses that cannot reduce emissions can offset by purchasing carbon credits, allowing them to manage costs effectively while promoting environmental care and enhancing competitiveness in the global market.

The overall carbon credit market size was valued at approximately 400 million USD (around 12,000 million baht) in 2020, and it is projected to reach 25 billion USD (approximately 750,000 million baht) by 2030. The market value of carbon credits depends on the ability to achieve the Net Zero mission across all sectors globally.

The top five countries with the highest carbon dioxide emissions globally are China, the United States, India, Russia, and Japan. Thailand ranks 26th in the world, emitting approximately 256 million tons per year, accounting for 1% of global CO2 emissions. The majority of these greenhouse gases come from the electricity generation sector, which contributes 39%. In 2021, with a population of about 67 million, Thailand emitted an average of approximately 3.8 million tons per year. Despite numerous measures to reduce greenhouse gas emissions, emissions in Thailand have increased by 53% since 2000.

The market for buying and selling Carbon Credits will operate under the Cap and Trade principle (setting a cap on greenhouse gas emissions and allocating rights to emit greenhouse gases specifically for CO2) in the form of allowable greenhouse gas emissions. Companies that trade carbon credits are those that emit less CO2 than the set cap, creating a surplus that can be sold as carbon credits to companies that exceed the cap (excess GHG emissions). What these companies must do is reduce their CO2 emissions or purchase carbon credits to offset.