Prasertsuk Chamornman, executive director of the Thailand Greenhouse Gas Management Organisation (TGO), said yesterday that it took years to complete the proposals with input from all stakeholders.

“Thailand’s proposals are among the best from developing countries. By value, the grant is nothing. But it confirms international recognition that we can take a leading role in the region in several aspects to reduce greenhouse gases and combat climate change,” she said.

The grant will finance in-depth studies on economic and social impacts if Thailand implements PMR proposals.

Thailand is among 17 countries participating in the bank process, to take advantage of a pool of funds provided by 13 developed countries. Other participants in Asia are Indonesia, Vietnam, India and China.

Established in 2011, the fund encourages the “scaling up” of carbon trading in middle-income countries.

With PMR, the World Bank is pushing ahead with new carbon markets regardless of the outcome of multilateral negotiations, using bilateral agreements if necessary, and bankrolling its initiative with “fast-start” climate financing.

Thailand’s proposals has four parts.

The first will involve large buildings and factories, which number about 9,000 nationwide according to the Department of Alternative Energy and Development. Joining the scheme on a voluntary basis, they will have to set targets to reduce energy from a business-as-usual basis. Companies that are able to cut energy below the target will receive performance certificates. This will then be assessed to determine how the carbon credit should be priced.

The second part deals with local communities and municipalities that vie to become low-carbon cities. TGO, the Thai body managing greenhouse-gas reductions, will help municipalities gauge their carbon footprint and draft plans to reduce gases via alternatives that fit each community – such as greater focus on renewable energy and reforestation.

Some 24 municipalities would be the first to join this initiative, they said.

The third part will involve a legal framework to support emission trading in Thailand. According to Pongvipa Lohsomboon, deputy director at TGO, there have been talks with companies in the petrochemical, paper and cement sectors that could take a lead in this scheme.

Thailand, they said, was the 22nd-largest carbon-dioxide emitter in the world and fifth-largest in the East Asia and Pacific region.

Over the past decade, the energy sector has been the most important source of greenhouse-gas emissions and it will contribute to 76 per cent of total gas emissions in 2050 if current operating practices in the Kingdom continue.

Thailand is among nearly 200 countries pledging to limit increases in global temperature (COP21).

“PMR will drive the country’s efforts in reducing greenhouse gases. We can be part of the global effort in fighting climate change. The task [in the next two years] will show others that we can lead the region in this respect, for efficient greenhouse-gas reduction and a better quality of life for all people,” Prasertsuk said.