Climate Change

Greenhouse Gas Emission and Climate Change Strategy

Climate change has become a critical driver of the volatility of global energy and will continuously increase its impact on the global energy industry. The energy shift includes the change in fuel sources to generate power from coal and fossils to renewables or clean energy. Thailand has a policy to shift energy sources to those of renewables as primary sources. Furthermore, the Thai government gave explicit statements at the United Nations-supported COP26 and COP27 on its obligation to actively participate in an effort to reduce GHG emissions with a Carbon Neutrality goal by 2050 and a Net Zero goal by 2065. Moreover, the European Community has launched a carbon trade mechanism known as the Carbon Border Adjustment Mechanism (CBAM), significantly affecting importers of goods into the EU market. This effect is more pronounced on the industrial sector manufacturing goods for export, as they are now forced to declare their sources of energy and pay carbon tax if energy sources for manufacturing are not renewable. In short, traders in such cases would lose their competitive advantages. There are other regulations and policies driven by many states to push the use and accessibility of renewables.

Under these circumstances, PEA has therefore committed to fully driving and developing activities to enhance the service quality and reliability of distribution systems, increase the use of renewables among its energy portfolio in the entire power network to reduce GHG emissions and strive to become a carbon-neutral organization to minimize environmental impacts and help Thailand achieve the carbon emission and GHG emission goals.

The enterprise GHG emissions are defined as the volume of GHG emitted by the organization, including that from fuel combustion, energy consumption, waste management, and transport, measured in tons of carbon dioxide equivalent, determined from three major sources and defined by the following scopes:

Scope 1 : Direct Emissions of GHG from direct activities of the organization, such as diesel energy consumption in the power generation process, gasoline consumption by vehicles, fuels used in power substations and power networks, construction of concrete electric poles, and seepages and leakages from processes and activities.

Scope 2 : Indirect emissions of GHG from energy consumption, such as those from the procurement of energy for internal consumption and losses associated with power transmission and distribution.

Scope 3 : Indirect emissions of GHG from other sources comprising

Category 1 : Purchased goods and services, such as water, paper, transformer oil, steel, gravel, cement, and sand for electric pole production.
Category 3 : Fuel-and energy-related activities (not included in Scope 1 or 2), such as units of electricity purchased from the Electricity Generating Authority of Thailand (EGAT) and very small power producers (VSPP).
Category 5 : Waste generated in operations, including municipal and hazardous waste.