GOVERNMENT POLICY AND THE FUTURE OF THAILAND'S ALUMINUM INDUSTRY

Abstract

This academic article analyzes the role of government policy in shaping the future of Thailand's aluminum industry under the context of the European Union’s Carbon Border Adjustment Mechanism (CBAM). It explores structural risks within the industry, the integrated management of government policies, and pathways toward a low-carbon industry to concretely support the adaptation of Thai enterprises. Through a comprehensive literature review and secondary data analysis of relevant academic documents and reports, the synthesis indicates that Thailand's aluminum industry is facing significant challenges from CBAM. These challenges are particularly evident in upstream production processes characterized by high energy consumption and greenhouse gas emissions, as well as among small and medium-sized enterprises (SMEs) facing limitations in funding, technology, and carbon footprint data preparation. Consequently, adaptation costs and competitiveness vary depending on the potential of each enterprise group. Furthermore, while the Thai government has provided various support measures including the development of production standards, the promotion of carbon data reporting, and financial support through green credit mechanisms implementation still faces inter-agency integration issues, making it difficult to effectively link these measures into a cohesive system. The article proposes that the government should develop network governance mechanisms, establish standard carbon databases, promote clean energy usage, and implement fiscal incentive systems linked to greenhouse gas emission reductions. The insights derived from analyzing these issues serve as a crucial factor for enhancing competitiveness and ensuring sustainable industrial growth in the future.