Assessing the potential of small and medium-sized enterprises in Thailand’s manufacturing sector to engage in carbon market mechanisms

Year 2025, Volume: 9 Issue: 4, 333 - 351, 30.12.2025

Thatsarat Sathira , Pantip Kayee , Suvit Toraninpanich , Itthidet Thawon , Wongkot Wongsapai , Tassawan Jaitiang , Pana Suttakul

https://doi.org/10.30521/jes.1762709

Abstract

This study evaluates the potential of Thailand’s Small and Medium-Sized Enterprises (SMEs) in the manufacturing sector to participate in carbon market mechanisms. SMEs play a significant role in energy consumption and greenhouse gas (GHG) emissions. This study applies the Thailand Voluntary Emission Reduction Program (T-VER) using two approaches: Improving energy efficiency in buildings (EEB) and renewable energy or fossil-fuel replacement (REF). Using data from Thailand’s Department of Alternative Energy Development and Efficiency (DEDE), the study analyzes energy consumption patterns, technology usage, and the potential for carbon credit generation. The results identify three high-potential sectors, including Food and Beverage, Fabricated Metal Products, and Non-metallic Products, with a combined carbon credit potential of 4.38 MtCO2eq. These credits represent a total market value of approximately 850 million baht per year, with 76.72% arising from electrical efficiency improvements and 23.28% from renewable energy integration. The findings highlight the need for targeted policy support, innovative financing instruments, capacity-building programs, and collaborative partnerships to help SMEs adopt low-carbon technologies and engage in Thailand’s voluntary carbon market. Strengthening SME participation could significantly enhance national progress toward net-zero emissions and the Bio-Circular-Green (BCG) economic strategy.

Keywords

Carbon credit , Carbon market , Decarbonization , Manufacturing sector , Small and medium-sized enterprises

Supporting Institution

This work was partially supported by Chiang Mai University (CMU), Thailand, CMU Proactive Researcher.

Thanks

This research was also supported by the United Nations Environment Programme (UNEP) and Chiang Mai University. The authors also gratefully acknowledge the Department of Alternative Energy Development and Efficiency (DEDE), Ministry of Energy, for providing valuable data.

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