BANGKOK – Thailand is intensifying efforts to cut greenhouse gas emissions from transport by expanding the use of renewable fuels, including biodiesel and biogas, while continuing its wider shift toward electric vehicles.
Thailand is under growing pressure to reduce emissions from road transport, one of the country’s biggest users of fossil fuels. The government is therefore promoting cleaner alternatives that can reduce oil consumption, support domestic agriculture and strengthen national energy security.
The strategy includes wider use of biodiesel, particularly B20, while biogas is being developed as another renewable energy source from agricultural waste, livestock operations, industrial wastewater and other organic materials. The approach forms part of Thailand’s broader effort to move toward a lower-carbon economy.
Key Takeaways
- Thailand is promoting biodiesel blends such as B10 and B20 to reduce dependence on conventional diesel and imported oil.
- Biogas can turn agricultural, livestock and industrial waste into renewable energy while helping reduce methane and other environmental impacts.
- The fuel strategy is being pursued alongside Thailand’s growing electric vehicle program and longer-term net-zero targets.
Biodiesel Takes a Bigger Role in Thailand’s Transport Strategy
Biodiesel is currently one of Thailand’s most established renewable transport fuels. It can be produced from vegetable oils, animal fats and used cooking oil, making it particularly attractive for a country with a large agricultural sector.
According to Thailand’s Ministry of Energy, biodiesel has properties similar to conventional diesel and can be used in compatible diesel vehicles without major engine modifications.
The government has promoted biodiesel for many years as a way to reduce fossil-fuel dependence. More recently, authorities have continued encouraging higher biodiesel blends as part of efforts to manage energy costs and improve energy security.
In March 2026, the Thai government announced plans to promote alternative diesel fuels, expanding the use of B10 and B20 from the previous B7 standard.
B20 contains a higher proportion of biodiesel than B7. As a result, greater use can increase demand for domestically produced renewable fuel while reducing the amount of petroleum diesel required.
The Energy Ministry has also highlighted environmental benefits associated with biodiesel. Its information says biodiesel can reduce certain air pollutants and black smoke compared with conventional diesel.
Why Biogas Matters to Thailand
Biogas offers a different opportunity. Instead of relying primarily on crops used for fuel, it can be produced from waste and wastewater.
Thailand has large quantities of organic waste from livestock farms, food-processing facilities, factories and communities. Through anaerobic digestion, this material can produce a gas containing significant amounts of methane, which can then be used as an energy source.
The Ministry of Energy’s biogas information says biogas typically contains around 50 to 70 percent methane, with carbon dioxide making up much of the remainder.
This allows Thailand to tackle two problems at the same time: waste management and energy consumption.
Biogas is already recognized in Thailand’s renewable-energy framework. Government climate documents identify biogas, biomass and waste as renewable energy sources capable of replacing fossil fuels.
However, biogas should not yet be viewed as a direct replacement for diesel across Thailand’s entire transport system. Its role is better understood as part of a broader renewable-fuel strategy, particularly where locally produced biogas can be upgraded and used efficiently.
Transport Remains a Major Climate Challenge
Thailand’s transport system remains heavily dependent on petroleum. According to the Asian Transport Observatory, road transport accounted for 98.5 percent of Thailand’s transport energy consumption in 2021.
That dependence makes road transport an important target for emissions reductions.
Thailand’s transport climate policies include a target to reduce greenhouse gas emissions from the transport industry and air pollution by 4 percent each year through 2027. The country’s longer-term climate strategy also identifies substantial emissions-reduction potential from the energy and transport sectors.
The government is pursuing several technologies at the same time. These include biofuels, electric vehicles, hybrid vehicles and improvements to public transport.
This is important because Thailand cannot rapidly replace every petrol and diesel vehicle with an electric model. Millions of existing vehicles will remain on the roads for years, creating a continuing need for lower-carbon liquid fuels.
Biodiesel Offers a Bridge for Existing Vehicles
For that reason, biodiesel can provide a relatively immediate emissions-reduction option.
Unlike a complete switch to electric vehicles, increasing biodiesel consumption does not require the country to replace its entire vehicle fleet. Compatible diesel vehicles can use approved biodiesel blends, allowing the existing transport system to participate in the energy transition.
The government has also linked biofuel policy to Thailand’s agricultural economy. Domestic production can create markets for crops and used cooking oil while reducing reliance on imported petroleum.
In June 2026, Energy Minister Aknat Promphan said the government was supporting biofuels, including ethanol and biodiesel, while subsidising E20 and B20 prices to make them cheaper than basic fuels. The policy is intended to reduce energy-import dependence and distribute more income to farmers.
Electric Vehicles Remain Part of the Long-Term Plan
Thailand’s renewable-fuel strategy does not mean the government is abandoning electric vehicles.
Instead, authorities are pursuing several solutions simultaneously. In July 2026, Reuters reported that Thailand was considering a 24-billion-baht initiative to help replace as many as 80,000 older transport vehicles with electric vehicles. The proposal included taxis, tuk-tuks, motorcycles, buses and trucks.
That approach reflects the scale of the challenge. Electric vehicles can provide major long-term reductions in transport emissions, particularly as Thailand increases the share of cleaner electricity.
Biofuels, meanwhile, can help reduce emissions from vehicles that remain dependent on internal-combustion engines.
Waste-to-Energy Could Expand Biogas Opportunities
Biogas could become increasingly important if Thailand develops stronger links between agriculture, waste management and transport.
The country has substantial livestock and food-processing industries capable of producing organic waste. Capturing methane from that waste and converting it into useful energy can provide an additional environmental benefit.
It can also reduce uncontrolled methane emissions from decomposing organic material. Methane is a powerful greenhouse gas, making effective waste treatment an important part of climate policy.
For Thailand, the opportunity is therefore larger than simply finding another transport fuel. Biogas can form part of a circular economy in which waste becomes an energy resource.
Thailand’s Road to Net Zero
Thailand’s wider climate strategy is becoming more ambitious. The country’s current climate planning includes a long-term goal of reaching net-zero greenhouse gas emissions by 2050.
The government is also advancing a proposed Climate Change Act designed to strengthen national greenhouse-gas reduction measures and support the country’s transition toward a low-carbon economy.
For transport, there is unlikely to be one solution.
Electric vehicles will play an increasingly important role, while biodiesel can help reduce emissions from existing diesel vehicles. At the same time, biogas and other renewable fuels can provide additional options where local resources make them practical.
Thailand’s challenge will be ensuring that these policies deliver genuine emissions reductions while keeping fuel affordable and maintaining energy security.
The push toward biodiesel and biogas therefore represents more than a change in fuel policy. It is part of a broader attempt to reduce Thailand’s dependence on imported fossil fuels while moving one of the country’s most oil-dependent sectors toward a lower-carbon future.
