Scaling up climate ambition post-2030: a long-term GHG mitigation analysis for Thailand

ABSTRACT

Thailand’s Nationally Determined Contribution (NDC) submitted to the United Nations Framework Convention on Climate Change (UNFCCC) aims to reduce 20 to 25% of greenhouse gas (GHG) emissions with respect to the projected reference level of NDC in 2030, respectively, in its unconditional and conditional scenarios. The Intergovernmental Panel on Climate Change (IPCC) states that limiting global temperature rise to 1.5°C would require net zero carbon dioxide emissions globally by around 2050. Thailand’s current energy system is highly fossil fuel dependent and requires enormous transformations to achieve more stringent GHG emission reduction targets beyond its NDC. This paper seeks to estimate the level and the intensities of Thailand’s energy system and their economy-wide effects post-2030 under the business as usual and 16 GHG emission reduction scenarios ranging from 30 to 100% by 2050. A computable general equilibrium analysis using the AIM/Hub model is employed to estimate the macroeconomic impacts of meeting the unconditional and conditional emission reductions of Thailand’s NDC in 2030 along with varying GHG emission reductions in 2050. Results show that renewables – constituting solar, wind, biomass and hydro and carbon capture and storage (CCS) technologies account for more than 95% in the power generation mix by 2050, if 100% GHG emission reduction from the 2010 level is to be achieved. Electricity generation based on biomass both with and without CCS will occupy a major share in the investments by 2050 in all the conditional and unconditional NDC scenarios. A rapid increase in carbon sequestration occurs from 2040 onwards through the deployment of CCS and bioenergy with CCS (BECCS) technologies in all the conditional and unconditional NDC scenarios. Carbon prices lie in the range of 3.4–266.2 US$/tCO₂eq during 2025–2050 to achieve 100% GHG emission reductions in 2050. Imposition of early stringent mitigation target lowers the carbon prices in the conditional scenarios towards 2050 when compared to the unconditional scenarios. The rapid uptake of CCS, energy efficiency improvements and electrification of the end-use technologies are identified to be the key measures to transform the energy system of Thailand.

Key policy insights

• By 2050, the Thai economy would face a higher fall in both the GDP and household consumption in the unconditional scenarios than those in the conditional scenarios at all levels of GHG emission reduction.

• Results indicate that early mitigation efforts can be less costly than the delayed ones in the long-term.

• The cumulative investment needed to achieve decarbonization in Thailand is estimated to exceed 355 billion US$₂₀₀₅ over the period 2010–2050 in the 100% GHG reduction scenarios.

• The transmission and distribution investments in the power sector need to increase by 30–35% to attain 100% GHG emission reductions during 2010–2050.

• The trade deficit improves by up to 23–29% in the various GHG mitigation scenarios in 2050.

KEYWORDS:

• Nationally determined contribution
• long-term GHG emissions
• Paris Agreement
• AIM/Hub model
• Thailand

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

Authors received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement no. 821471 (ENGAGE). Shinichiro Fujimori and Ken Oshiro are supported by the Environment Research and Technology Development Fund [grant number JPMEERF20192008], [grant number JPMEERF20211001] of the Environmental Restoration and Conservation Agency of Japan, and the Sumitomo Foundation.