Federation of Thai Industries Calls for Review of Draft Clean Air Act Penalties

Bangkok: The Federation of Thai Industries (FTI) has expressed support for the Clean Air Management Act, B.E. …, but is calling for a review of the draft law’s provisions, citing concerns over severe penalties and increased burdens on businesses.

According to Thai News Agency, the FTI has issued a statement highlighting its agreement with the draft Act’s intent to improve environmental quality and reduce PM2.5 dust pollution. However, the organization is wary of potential overlaps with existing legislation, such as the 1992 Environmental Quality Promotion and Conservation Act and the 1992 Factory Act, which could impose unnecessary costs on the business sector.

Mr. Kriangkrai Thienukul, President of the FTI, emphasized the need for clarity in enforcement to avoid duplicate burdens that could affect investment and foreign investor confidence. He also outlined four key issues for review: increasing private sector representation on the committee, focusing economic tools on incentives rather than punishments, ensuring transparency in the establishment of a clean air fund, and revising penalties to align with international standards.

The FTI is advocating for the inclusion of representatives from the Thai Chamber of Commerce, the FTI itself, and the Thai Bankers’ Association on the relevant committees to ensure balanced policymaking. It also suggests tax or financial incentives to support clean technology, rather than imposing fees that overlap with existing taxes.

Concerns were also raised about the draft law’s penalties, which Mr. Kriangkrai described as disproportionately harsh compared to international norms. The FTI recommends adjusting these penalties and providing a transition period for industries to comply with the new regulations.

The FTI asserts that while clean air laws are necessary, they should not create redundant burdens but should strike a balance between environmental protection and maintaining the country’s competitiveness.