DLA Piper International supports Thailand’s carbon pricing transition under UK PACT

DLA Piper International, as an implementing partner under the Thailand‑UK PACT programme, has supported Thailand in advancing its carbon pricing framework through a report delivered in collaboration with Thailand’s Department of Climate Change and the Environment (DCCE), setting out practical actions to help build a system that works in practice.

The report, Building Thailand’s Carbon Pricing Architecture: Comparative Insights from the EU and International Experience on ETS, Carbon Tax, and CBAM, has been developed under Thailand‑UK PACT (Partnering for Accelerated Climate Transitions), a flagship programme under the UK’s International Climate Finance (ICF) portfolio, jointly governed and funded by the Foreign, Commonwealth and Development Office (FCDO) and the Department for Energy Security and Net Zero (DESNZ).

Thailand is in the process of drafting an ambitious new Climate Change Act which establishes a comprehensive carbon pricing framework, comprising of a new emissions trading system (ETS), carbon tax, and Carbon Border Adjustment Mechanism (CBAM).

However, moving from legislation to a system that works in practice will be critical if carbon pricing is to reduce emissions  while ensuring that ambitions for a low-carbon economy are achieved.

The review of the Climate Change Act by DLA Piper and the resulting report provides legal and policy recommendations on the development of these key instruments, drawing on international experience and national and regional priorities.

The report identifies key actions to support the development of a carbon pricing system that is both effective and inclusive; capable of driving decarbonisation, supporting the transition to a low-carbon economy. This includes strengthening emissions data and reporting, supporting industry transition, and addressing how impacts are managed across businesses, households and the wider economy.

A central focus is the role of Thailand’s Department of Climate Change and the Environment (DCCE), which will be responsible for implementing these instruments. This includes overseeing emissions reporting, establishing market infrastructure and ensuring compliance across the industry.

Drawing on lessons from the EU and UK ETS and CBAM, the report recommends a phased approach to implementation, enabling the instruments to develop over time while building confidence and trust across government, industry and civil society.

It also considers how Thailand can respond and adapt to international carbon mechanisms, highlighting the importance of robust emissions data and verification to support exporters.

The work has been informed by technical workshops and consultations with Thai government agencies, including the DCCE, as well as industry representatives, UN organisations, civil society groups and international experts. These discussions have helped ensure that the recommendations reflect Thailand’s priorities and the practical realities of implementation.

Jean‑Pierre Douglas‑Henry, Managing Director, Asia & Australia and Sustainability, DLA Piper International, said: “Thailand has a strong foundation to develop a carbon pricing framework aligned with its economic priorities and climate ambitions. The focus now is on ensuring these systems work in practice through coordinated implementation and an inclusive approach. By combining legal analysis with practical, market facing recommendations, our cross-border team supported the development of a carbon pricing framework that is both internationally credible and capable of driving real world decarbonisation”.

Nabila Suria, Climate Counsellor and UK Permanent Representative to the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), Bangkok, added: “As Thailand progresses its Climate Change Act, the United Kingdom is proud to partner with Thailand in supporting the development of carbon pricing mechanisms that can be implemented effectively in practice. This collaboration reflects our shared commitment to reducing emissions and supporting the transition to a low-carbon, sustainable future”.

The Thailand‑UK PACT programme forms part of the UK Government’s wider International Climate Finance commitment, supporting countries to accelerate the transition to low‑carbon, sustainable economies.

This work was recognised at The Legal 500 UK ESG Awards 2026, where DLA Piper International was awarded Best Advisory Team: Sustainable Finance.

Notes to editors

This work forms part of the UK PACT funded project: Pathways to Carbon Market Readiness: ETS (Emissions Trading System), Carbon Tax, and CBAM (Carbon Border Adjustment Mechanism) for Equitable Climate Action.