Power plants, petrochemical factories and refining facilities in Rayong province face having to pay Thailand's first-ever pollution tax.

On Friday, an Industry Ministry committee will propose that the ministry levy the radical tax on the plants.

The planned tax would also target upcoming power plants likely to locate in the area under the Independent Power Producers (IPP) project.

The proposal came from a temporary committee recently set up by the ministry to make recommendations on how to deal with emission charges.

Deputy permanent secretary Damri Sukhotanang, head of the committee, said this idea would reduce pollution emissions and create more opportunities to support industrial expansion in the future.

The plan was announced as Thailand's galloping industrial development has been found to be causing serious health problems, particularly for those living near Map Ta Phut Industrial Estate, where a large number of petrochemical and industrial plants are located.

The committee has assigned the Thai Environment Institute to study how to fix the rate of emission charges. "In some developed countries, the government charges between 0.5 per cent to 5 per cent of net profit," Damri said.

However, he said the committee had yet to decide to follow any country's emission-charge system.

He added that the committee was considering whether to collect emission charges in terms of taxes or funds. However, he confirmed that money from emission charges would go towards improving communities in the area.

He was not sure whether emission charges would become effective in the period of the interim government. However, the committee will speed up the completion of all details in April before the IPP power plant bidding starts.

This new tax would be separate from the energy tax that power plants will be subject to.

Damri said the committee would talk to the National Energy Policy committee to consider including an emission charge in the terms of reference (TOR) of the coming bidding.

Meanwhile, the details will be proposed to Deputy Industry Minister Piyabutr Cholvijarn this Friday.

If private companies are willing to comply with the idea, the emission charges might be applied before the regulation becomes effective by law, he added.

However, the Industry Ministry will impose an emission charge on three industries - power plants, petrochemical and refining facilities - at the beginning because they emit the largest quantity of sulphur dioxide and oxide of nitrogen.

He said an emission charge would cover sulphur dioxide (SOx), oxide of nitrogen (Nox) and particulate dust.

According to a report of the Department of Industrial Works, 10 plants that emit the most Nox are BLCP Power, Electricity Generating, Glow SPP3, PTT, PTT Chemical, Rayong Refinery, Rayong Olefins, Glow Energy, Tuntex (Thailand) and Star Petroleum Refining. They emitted 88 per cent of total Nox in the area last year.

The 10 plants that emitted the most SOx last year were BLCP Power, Glow SPP2, PTT, RRC, Star Petroleum, Tuntex (Thailand), PTT Chemical, Bangkok Polyethylene, Padaeng Industry and The Siam Construction Steel Company. They emitted 96 per cent of total SOx last year.

"Although these plants emit SOx and Nox at a high rate, they don't emit over our standard," Damri said. "All of them realise this and show a spirit to cooperate with the public sector to reduce their pollution emissions to the lowest limit."

He said that every power plant would be forced to install a parameter at smoke stacks to measure their pollution emissions in the future.

Chalida Ekvitthayavechnukul

The Nation