Reduction in sugarcane burning through carbon credits to achieve net zero target (Current Issue No.3509 Full Ed.)

• Sugarcane is a crucial economic crop because it helps generate an annual income of approximately THB 100 billion for farmers. However, the harvesting process typically contributes 23 percent of agricultural dust emissions and an average of 2.4 million tons of greenhouse gas (GHG) emissions per year.
• The government has implemented measures to promote fresh sugarcane harvesting by providing financial incentives. However, due to high harvesting costs, completely eliminating sugarcane burning remains unachievable.
• KResearch suggests three approaches to support the reduction in sugarcane burning:

1.    Establishing carbon credit standards and registration. Initially, if such standards are established, the price of carbon credits should be no less than THB126 per tCO2, or THB 915 million per year, to compensate for costs incurred by farmers who stop burning agricultural residues.  (operating costs varying according to each farmer’s conditions)
2.    Aligning domestic carbon credits with international standards for greater access to markets with stronger demand
3.    Reducing the proportion of sugarcane plantations in favor of fast-growing trees which would not only generate income but also offer the potential to register for carbon credits.