Abstract
Ratification to the Kyoto Protocol allows Thailand to voluntarily participate in the Clean Development Mechanism (CDM). CDM not only promotes environmental integrity but also offers business sustainability, which will be then able to enhance company’s competiveness. Due to these enthusiastic impressions, number of CDM registered projects in Thailand has been increased from 5 to 40 projects between 2005 and 2010, respectively. Several business sectors in Thailand have been moving their position toward to CDM including agribusiness sectors namely sugar, tapioca, rice, agrofuel, livestock and forestry. This study carries out an in-depth analysis on the correlations between CDM mechanism and agribusinesses in Thailand through the competitiveness indicator with a view to affirm that the level of competitiveness in Thailand agribusinesses can be enhanced through the CDM scheme. Productivity improvements in term of technology and project financial before and after the CDM application are served as competiveness indicators. The study concludes that CDM offers opportunity for company to move toward a better technology with a better operation performance and greenhouse gas reduction. The improvement of productivity level is found through an anticipated revenue stream from carbon credits which delivered project’s rate of return well above company’s hurdle rate of approximately 10-16% for 4 types of agribusinesses i.e. palm oil, rice mill, ethanol and tapioca. Despite abovementioned benefits,, CDM still faces a lot of challenges including a requirement on a substantial amount of investment which requires for starting the CDM process, risk of local and international approvals, deliverable risk, and uncertainty on CDM processing time and the future of CDM after the first commitment period, 2012. These challenges, however, can be overcome by well-disciplined preparation and better understanding on CDM process and requirements.
Highlights
As a result of the dynamic economic changes around the world which have led to a sustained period of growth in Thailand’s economy, a robust, strategically working plan emphasising enhanced levels of competition to tackle these changes is required
Further analysis reveals that 67.5% of the total projects with LoA were related to agricultural industries including tapioca, sugar, palm oil, rice and agrofuel, representing 4,701,193 credits (Figure 3)
32 projects are related to agricultural businesses, including tapioca, swine farms, sugar refinery, palm oil, rice mills and ethanol and a total of 1,734,073 Certified Emission Reductions (CERs), representing 75.5% of the total CERs from the total of registered projects
Summary
As a result of the dynamic economic changes around the world which have led to a sustained period of growth in Thailand’s economy, a robust, strategically working plan emphasising enhanced levels of competition to tackle these changes is required. Porter is the necessity for transformation of a company’s strategies, on its strategy to increase productivity, which can affect the real wealth of the company (Porter, 2003). When such a recommendation is combined with the changing world environment, opportunities and challenges for productivity enhancement have gradually. ISSN 1913-9063 E-ISSN 1913-9071 www.ccsenet.org/jsd emerged from global responses to the global climate change issues This is because there has been a continuous and urgent call for a global treaty to address the challenge since the IPCC’s first scientific report came out in 1990, stating the serious threats that climate change represents (IPCC, 1990). Countries of the Alliance of Small Island States (AOSIS) are campaigning for a far more ambitious target of 1.5 o C (AOSIS, 2008)
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