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20 Feb 2024

Econ Digest

The electric power, cement, iron & steel, fertilizer, and aluminum industries are set to be pressured by measures aimed at reducing greenhouse gas (GHG) emissions

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        Industries with high greenhouse gas (GHG) emissions are under pressure from measures aimed at reducing GHG emissions, which are likely to threaten their competitiveness in the future. Thai-registered companies have higher emission intensity than the global average, especially in the public utilities sector due to the use of natural gas, oil and coal in electricity production, and in the raw material processing industry because its production process affects GHG emissions of other industries in the supply chain.

        KResearch assesses that businesses in the power plant, cement, iron & steel, fertilizer and aluminum sectors will face stringent environmental policies from both Thailand and other countries over the next few years. The public sector must play a role in amending regulations to facilitate investment, providing financial support for research, and using pricing mechanisms to incentivize businesses and consumers to use low GHG emission products. Additionally, businesses may have to reduce GHG emissions to maintain their future competitiveness.

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