(Jan 16): Thailand aims to introduce a new carbon credits market this year as Southeast Asia’s second-largest economy seeks to address weak demand and low prices.

The Stock Exchange of Thailand would operate the new platform, said Pornanong Budsaratragoon, secretary-general of the nation’s Securities and Exchange Commission, which is working on the proposals.

“Thailand needs a much more active carbon credit market,” Pornanong said on Tuesday in an interview. The local “stock exchange will offer trading expertise and a wider base of investors to help it succeed”, she said.

Thaksin Shinawatra, the de facto chief of Thailand’s ruling party, called earlier this week for a new trading venue for carbon credits, alongside separate efforts aimed at bolstering the country’s beleaguered stock market.

Thailand’s domestic trade in carbon offsets has been hampered by oversupply that’s weighed on prices, BloombergNEF said in a Jan 6 report. About 3.5 million tonnes of credits were purchased between 2016 and October last year, while about 20.5 million tonnes of credits were generated over the same period.

The nation also makes some sales into international markets, and has signed recent pacts for country-to-country trading of credits. Along with nations like Indonesia and Malaysia, Vietnam, it is seen as holding major potential to supply global demand as trading in carbon credits picks up.

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