Thai SMEs face pressure to adopt green practices as carbon trade rules reshape market access

Thai small and medium enterprises are under growing pressure to adopt green practices as carbon-related trade rules increasingly determine market access, not just price or quality. The article from the Thailand Development Research Institute outlines a transition path involving self-assessment, planning, implementation, and monitoring, but notes most SMEs remain focused on immediate survival and lack capacity, data systems, and access to green finance. Green loans currently represent only 1.4% of Thailand's total outstanding loans, with most directed toward large corporations. The piece identifies clearer policy direction, coordinated government support, tax incentives, and simplified reporting tools as essential for enabling SMEs to participate in the low-carbon economy and remain competitive in global supply chains. Practical measures like energy-efficient machinery, solar panels, and electric vehicles are already in use but not recognized as part of a wider green transition.