Carbon markets at scale can significantly reduce the cost of decarbonising our economies and societies — vital action to stave off the worst impact of climate change. The Swiss and Thai governments are demonstrating extraordinary climate leadership to make this change by authorising the first Article 6 programme in Asia. This programme channels climate finance from Switzerland to the Bankok E-Bus programme, marking a significant step in decarbonising the Thai mobility sector, improving air quality in the capital and improving the wellbeing of those who call it home. We are honoured to have played our part and worked closely with the Thai and Swiss governments, KliK Foundation and our client Energy Absolute PCL (EA) to make this happen.
Karolien Casaer-Diez, Director, Climate Policy, Finance and Carbon Markets Asia at South Pole.
This press release was originally published on the Klik Thailand website here.
Thailand and Switzerland have authorised a climate protection programme that will reduce greenhouse gas emissions and air pollution in the greater Bangkok Metropolitan Area through the introduction of electric vehicles in privately-operated public transport.
The Bangkok E-Bus Programme, owned by Energy Absolute Public Company Limited, is the first authorised programme under Article 6 of the Paris Agreement in the whole of Asia and the second worldwide. It is supported by the Foundation for Climate Protection and Carbon Offset KliK (KliK Foundation). By purchasing the resulting Internationally Transferred Mitigation Outcomes (ITMOs), the KliK Foundation makes the programme financially viable.
The Bangkok E-Bus Programme is the first authorised climate protection activity in the context of the bilateral cooperation agreement between Switzerland and Thailand, in accordance with Article 6 of the Paris Agreement, which is supported by the KliK Foundation.
The programme owner Energy Absolute Public Company Limited has contracted South Pole to develop the Bangkok E-Bus Programme, enabling the private operator of e-buses to convert its fleet in the Bangkok Metropolitan Area from diesel to electric vehicles.
In parallel, it will lay the foundation for a city-wide network of charging infrastructure. To secure the financing, the purchase agreement between Energy Absolute Public Company Limited and the KliK Foundation on greenhouse gas emission reductions (International Transferred Mitigation Outcomes, ITMOs) from this programme was signed on 24 June 2022. The climate protection measure will contribute significantly to improving the air in the capital and, as a flagship programme, is expected to pioneer the electrification of Thailand's mobility sector.
Thailand and Switzerland's two Ministers of Environment signed a cooperation agreement on climate action under Article 6 of the Paris Agreement on 24 June 2022. This bilateral agreement regulates the cooperation between the two countries and establishes the legal framework for the implementation of climate protection activities by the KliK Foundation. The ITMOs achieved with KliK Foundation's financial support are transferred in accordance with the bilateral agreement and used to meet Switzerland's emission reduction target under the Paris Agreement. The cooperation agreement ensures that the ITMOs, in addition to Thailand's unconditional NDCs (Nationally Determined Contributions), meet the highest standards of quality, environmental integrity, SDGs and human rights. To avoid double counting, Thailand commits to increase its emissions balance by the amount of ITMOs transferred to Switzerland.
Chatrapon Sripratum, Vice President, Strategy Development and Investment Planning Department at Energy Absolute Public Company Limited said: “Bangkok E-Bus is the first programme developed in accordance with Article 6 of the Paris Agreement in Asia and among the first worldwide. In implementing this programme, Energy Absolute Public Company Limited is acting as a pioneer in this field of cooperative climate protection in Thailand. This contribution towards a decarbonised economy will act as a beacon programme and inspire other private sector actors in Thailand to scale up their climate action."
Michael Brennwald, Head International at KliK Foundation, said: “The Bangkok E-Bus Programme stands as a beacon programme for the important journey towards substantial climate action under Article 6 of the Paris Agreement. The Article 6 mechanisms are strongly developing, and we are looking forward to further programme proposals from the private sector in Thailand, as well as from other countries that signed a bilateral cooperation agreement with Switzerland."
South Pole is the world's leading carbon asset developer and climate consultancy.
Since 2006, South Pole has been a trusted partner and advisor to governments, public sector organisations, and leading businesses on their decarbonisation journeys. South Pole serves over 1,000 clients across the world, and its global team of experts has helped many Fortune 500 businesses implement comprehensive strategies that help build resilience and turn climate action into long-term business opportunities.
In line with its mission to deliver true climate impact for all, South Pole has used the power of markets to help channel climate finance to over 850 projects in more than 50 countries across the globe. To date, these projects have helped reduce over 200 million metric tonnes of CO2 emissions, accelerated low-carbon transformations across several sectors, and provided measurable benefits to communities vulnerable to climate change.
The business is supported by world-class investors, including Temasek's GenZero, Lightrock, Corisol, and Salesforce Ventures.
South Pole is a social enterprise recognised by the World Economic Forum's Schwab Foundation, and committed to becoming a B Corp globally across all of its local entities.
For more information, visit www.southpole.com or LinkedIn.
Energy Absolute Public Company Limited is a leader in renewable energy innovation in Thailand. It is using high-level technology in solar and wind power plants and battery energy storage for power industries, as well as all types of electric vehicle. Energy Absolute Public Company Limited is progressively evolving, in both its expertise and innovation.
The KliK Foundation fulfils the legal obligation on Swiss motor fuel importers, mandated under the Swiss CO2 Act, to offset part of the carbon emissions from the Swiss transport sector. To this end, the KliK Foundation supports and organises not only national but also international climate protection programmes, in accordance with Article 6 of the Paris Agreement. It finances the deployment of climate-friendly technologies and innovations through the purchase of the resulting ITMOs of mitigation activities.
Contact: andrea.reiter@klik.ch
