Climate change reshaping economic outlook

Climate change is no longer limited to shifting weather patterns, but is a growing force reshaping Thailand’s economic outlook in 2026, according to Treethep Palakavong Na Ayudhya, chief executive of Global Carbon Corporation, a local greenhouse gas management consultancy.

While many business leaders highlight political and economic flashpoints, from Donald Trump’s tariff policies to the US‑China trade war and Thai‑Cambodian border tensions, Mr Treethep argued that global campaigns to curb carbon emissions pose a more pressing challenge.

He warned that Thai entrepreneurs, particularly in the iron and steel sector, must overhaul production methods to cut carbon footprints or risk penalties under the European Union’s Carbon Border Adjustment Mechanism.

Mr Treethep said the issue extends beyond exporters: all firms, from large corporations to small businesses, will face similar pressures starting this year.

“Local businesses can no longer claim immunity by focusing only on domestic markets,” he said. “They cannot use such an excuse anymore.”

As an example, Mr Treethep pointed to 7‑Eleven convenience stores, operated by CP All Plc, which plan to require carbon footprint and greenhouse gas data on product labels by 2030.

With more than 14,000 outlets nationwide, the retailer’s policy will force suppliers to adapt their production processes.

He said even companies that do not export to Europe, North America, Japan or Australia must change their mindset. Greater attention to climate responsibility is now essential, not only for protecting the planet but also for safeguarding revenues and profits, said Mr Treethep.