Taiwan Establishes Carbon Exchange in Pursuit of Net Zero

In a move to bolster its commitment towards achieving net zero emissions by 2050, Taiwan has inaugurated a carbon exchange in Kaohsiung. The newly established Taiwan Carbon Solution Exchange (TCSE) will facilitate carbon credit trading, catering to the rising demand from local businesses and aligning with the country’s climate goals. The launch ceremony, attended by Taiwan President Tsai Ing-wen, saw the Taiwan Stock Exchange (TWSE) and the National Development Fund invest T$1.5 billion (US$47.43 million) into the TCSE. President Tsai said the initiative could stimulate over T$4 trillion in private investment, generate T$5.9 trillion in output value, and yield job opportunities valued at more than T$550,000 from 2023 to 2030. The implementation of carbon credit trading is scheduled for the first half of the upcoming year, pending the formulation of carbon pricing and trading regulations by Taiwan’s Environmental Protection Administration. The proposed framework contemplates carbon emissions charges ranging from T$100 to T$300 per tonne, with exclusive trading of carbon credits on the TCSE by corporations. The launch of the TCSE is closely aligned with the Climate Change Response Act, which was enacted in February, enshrining the net zero emissions objective in law. Over 500 local manufacturers accounting for 90% of Taiwan’s carbon emissions are mandated to pay carbon fees under this legislation.

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