Global changes are reshaping multiple sectors, driven by advancements in technology, societal shifts, political fragmentation, economic trends, and environmental concerns. Climate action and the Sustainable Development Goals (SDGs) play a pivotal role in shaping policies to reduce greenhouse gas (GHG) emissions and address global warming. The emphasis on investing in clean and renewable energy presents opportunities for economic modernization, especially as countries, including Thailand, navigate the transition from internal combustion engines (ICE) to low-emission vehicles (LEVs).

In Thailand, 70 percent of total GHG emissions is from the energy sector, of which, transportation accounts for 30 percent. Electric vehicles (EVs) offer a transformative solution for reducing emissions; however, their overall impact depends on cleanliness of electricity generation and manufacturing processes of vehicle components i.e., batteries. The transition to EVs presents challenges, including ensuring a just transition for stakeholders in ICE and biofuel industries. LEVs such as hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs) provide a balanced approach for this transition.

In 2023, the Government of Japan funded the policy research on the "Supporting NDC Target through Incentivizing the Use of EVs" project to support Thailand to mitigate greenhouse gas reduction in the transport sector so as to achieve carbon neutrality by 2050. This initiative is a collaborative effort between the Office of Transport and Traffic Policy and Planning (OTP) and United Nations Development Programme (UNDP), with key technical contribution from Chulalongkorn University, the Thailand Automotive Institute (TAI), and ERM-Siam Co., Ltd.

The objective of this action research is to draw the comprehensive picture of Thailand’s LEV ecosystem and use it as the framework to systematically analyze LEV issues and propose strategies to overcome barriers to LEV adoption. In addition, the study proposes a scheme to accelerate GHG emission reduction by inventing an LEV climate credit program to harness GHG emission benefits to incentivize broader adoption of LEVs.