Switzerland, Thailand Ink Pioneering Article 6 ITMO Transfer for Bangkok E-Bus Program

Through the issuance of Internationally Transferred Mitigation Outcomes (ITMOs), completed on 20 December 2023, Switzerland and Thailand are the first countries to successfully use the cooperative approach under the Paris Agreement to make significant progress in cooperative climate action.

The Foundation for Climate Protection and Carbon Offset KliK purchased the first ITMOs from the Thai programme owner, Energy Absolute Public Company Limited.

The financial commitment of the KliK Foundation makes the conversion of the private bus fleet in the Bangkok Metropolitan Area from internal combustion engines to electric vehicles financially viable.

The Bangkok E-Bus Programme is the first authorised mitigation activity under the bilateral climate agreement between Switzerland and Thailand in accordance with Article 6 of the Paris Agreement.

The programme owner Energy Absolute Public Company Limited is working to achieve its goal to convert the fleet of private operators of e-buses in the Bangkok Metropolitan Area from internal combustion engines to electric vehicles. In parallel, it started laying the foundation for a city-wide charging infrastructure network.

To secure the financing, the purchase agreement between Energy Absolute and the KliK Foundation on greenhouse gas emission reductions as Internationally Transferred Mitigation Outcomes (ITMOs) from this programme was signed on 24 June 2022.

The ITMOs Transfer

Following the initial approval of the annual monitoring and verification report by both governments, the ITMOs were issued. With the issuance of a Statement of Recognition of Transfer by Switzerland, the first ITMOs for NDC use are now a reality.

For the first time, the process of programme development, implementation and the first transfer of ITMOs for NDC use have been carried out. Now that all steps have been taken and are clear, the implementation of all future projects will be much easier.

1,916 ITMOs purchased by the KliK Foundation were transferred in accordance with the bilateral climate agreement and credited to the KliK Foundation’s account in the Swiss Emissions Trading Registry on 15 December 2023. The ITMOs will be used by the KliK Foundation to fulfil its compensation obligation under the Swiss CO₂ Act.

Switzerland intends to use these internationally transferred mitigation outcomes towards its target under the Paris Agreement (NDC). To avoid double counting, Thailand has committed to adjust its greenhouse gas inventory by the amount of mitigation outcomes transferred to Switzerland.

“The implementation of the Bangkok E-Bus Programme and the first issuance of ITMOs for NDC use under the Paris Agreement is a beacon moment for climate action. It shows that the complex mechanism under the cooperative approach is leading to reductions in CO₂ emissions. Our successful programme implementation is contributing towards a decarbonised economy and may inspire other private sector actors in Thailand and worldwide to scale up their climate action,” said Chatrapon Sripratum, Vice President, Climate Change Strategy & Sustainability at Energy Absolute Public Company Limited.