Thailand’s DNA, called the Thailand Greenhouse Gas Management Organisation (Public Organisation) or TGO, has recently announced its plan to set up a national carbon fund (the Fund) by the end of this year. The Fund, which is expected to attract investment from both public and private sectors, will have as its main objective the provision of financial support (whether in the form of debt, equity or prepayment of CERs) and technical assistance to local CDM projects, particularly small and medium sized projects that have difficulty obtaining funding from private investors and commercial banks. The Fund will also purchase CERs from small and medium sized CDM projects. The CERs purchased by the Fund will then either be allocated to relevant investors to be used for compliance purposes or sold in the secondary market.

The TGO is currently in the process of drafting a proposal on the potential structure of the fund, which is expected to be in final form by the end of September 2009. The final draft will be submitted to the National Committee on Climate Change Policy, chaired by the Prime Minister, for endorsement.