This study examines the prospects for CO2 reduction in the Thai power sector during 2010-2030. The
effect of CO2 emission reduction targets on the development of clean technologies is analyzed in this
paper. The Asia-Pacific Integrated Model (AIM/Enduse) is used to analyze CO2 reduction targets and also
carbon taxation. The nuclear power plant emerges as an available option when the 20% of CO2 reduction
is introduced. The energy generation from nuclear power plants increases around two folds in 40% CO2
reduction target when compared with 20% CO2 reduction target scenario. However, carbon capture and
storage is introduced when the reduction target is at 60% reduction target. The coal consumption is
diminished by the introduction of carbon taxation in 2030 while natural gas consumption increases when
the higher carbon taxation is introduced. In 2030, CCS technology is the option after the introduction of a
carbon tax rate of $200/tCO2. In order to stabilize the CO2 emission in 2010, a carbon tax rate of
$200/tCO2 is recommended.