SCG promotes plan to slash Thailand’s carbon emissions

SET-listed Siam Cement Group (SCG), a leading conglomerate in Southeast Asia, is asking the government to adopt four proposals to speed up Thailand’s efforts to achieve carbon neutrality by 2050.
The four proposals, raised during the ESG Symposium 2024, were presented to Digital Economy and Society Minister Prasert Jantararuangtong, who presided over the recent event in Bangkok.
Improved environmental management is a key issue among ESG (environmental, social and governance) principles, which refer to a set of standards that can lead to business sustainability.
SCG, along with local officials and villagers in Saraburi, have translated the proposals into action under the Saraburi Sandbox, which aims to transform the province into Thailand’s first low-carbon city.
The company wants the government to follow what it calls a “public-private-people partnership” set up by the Saraburi Sandbox, hoping it will inspire the government to take stronger actions to successfully strike a balance between carbon dioxide emissions and absorption in the country in the next 26 years.
“The four proposals will yield more tangible results if the government continues to support the Saraburi Sandbox,” said Thammasak Sethaudom, president and chief executive of SCG.
The four proposals cover most aspects of efforts to cut carbon dioxide emissions, ranging from legal and funding to technological know-how and help for small and medium-sized enterprises (SMEs) to reduce their carbon footprint.
The first proposal concerns a need to unlock legal and regulatory barriers.
Mr Thammasak urged the government to expedite the liberalisation of clean energy trading through grid modernisation, enabling all sectors to access clean energy more easily.
He said Thailand should pass a new law to promote the circular economy, which involves the upcycling process to add value to unwanted materials, making them usable again.
Authorities should do more to promote sustainable consumption and encourage manufacturers to design products using alternative or recycled materials, as well as manage waste effectively, said Mr Thammasak.
“New tax reductions or subsidy programmes should be implemented, along with support for R&D of innovative products,” he said.
Under the second proposal, the government must promote green finance by helping businesses, especially SMEs, gain easier access to financial resources, while encouraging better understanding of how to use money to support plans to build more eco-friendly operations.
At present, most SMEs have no idea of how to spend the money on business and human resource development, said Mr Thammasak.
The third proposal covers promotion of green technologies and infrastructure, especially those related to clean energy.
One example is a heat battery unit being developed by SCG for use at its cement plants in Saraburi, he said.
Also known as thermal energy storage, the heat battery can convert electricity produced by solar panels into heat, which can be stored by factories for use when it is needed.
According to Mr Thammasak, existing infrastructure should be improved and utilised to its fullest potential, such as repurposing unused spaces for clean energy production.
Authorities can also promote better separation of wet and dry waste by using appropriate technologies such as waste separation and waste treatment systems, he said.
The last proposal provides help for SMEs to strengthen their adaptability and capabilities, focusing on developing the workforce’s knowledge and understanding of clean energy in order to reduce costs, said Mr Thammasak.
SMEs should also be introduced to automation and artificial intelligence technologies to enhance their competitiveness.
“SCG can serve as a mentor for SMEs,” said Mr Thammasak.
Mr Prasert said the government will consider all these proposals and promised swift action for some issues in the proposals that require an immediate response.
“For issues that require collaboration among state and private agencies, the government welcomes talks and knowledge exchange,” he said.
Mr Thammasak said he believes the Saraburi Sandbox will become a model for ongoing efforts to reduce carbon dioxide emissions and better protect the environment.
The scheme encourages businesses, state agencies and communities to work together to achieve environmental goals.
The sandbox implements the four proposals in a real-world setting, allowing participants to identify opportunities, limitations and solutions, he said.
The sandbox was jointly initiated by the Office of National Higher Education Science Research and Innovation Policy Council, the Thai Cement Manufacturers Association, and the Thailand Concrete Association.
One success under the scheme is the promotion of low-carbon cement, which reduces carbon dioxide emissions during cement manufacturing.
More than 80% of the cement used in place of portland cement is low-carbon cement, resulting in a reduction of CO2 emissions of 1,169,673 tonnes (based on data accumulated from January 2022 to March 2024), according to the Thai Cement Manufacturers Association.
This progress is crucial for meeting Saraburi’s sustainability goals, said Mr Thammasak.
Thailand aims to become the first country in Asia to eliminate portland cement by 2025, he said.
The production of portland cement, the world’s most widely used cement, is blamed for emitting significant amounts of carbon dioxide into the atmosphere.