Taiwan has opened its inaugural carbon exchange in the southern city of Kaohsiung, in a move to achieve net-zero emissions by 2050, as reported by Taipei Times on August 7. With a total investment of NTD1.5bn (USD47.3m), the exchange will offer a range of services, including carbon consultancy, education and training, and carbon credit trading. In an effort to address concerns among local businesses regarding the impacts of carbon pricing, the exchange’s initial focus will be on consultation services pertaining to topics such as domestic carbon levies, international carbon border taxes, and supply chain carbon neutrality. Carbon credit trading will be introduced at a later stage, as the Environmental Protection Administration (EPA) is currently in the process of formulating regulations for carbon pricing and trading.

The establishment of the carbon exchange aims to propel Taiwan’s industrial transformation through the reduction of carbon emissions. This initiative also seeks to fulfill the demand among local enterprises for carbon credit trading opportunities. The EPA has unveiled a plan to begin collecting carbon fees from greenhouse gas emitters in the latter half of 2024. These emitters will be able to utilize carbon credit trading as a means to mitigate their carbon levies. Moreover, carbon credit trading is expected to bolster the competitiveness of Taiwan’s industries within the global supply chain. This is particularly pertinent given the increasingly stringent carbon footprint requirements imposed by clients such as Apple and Google on their suppliers.

Sources:

https://www.taipeitimes.com/News/front/archives/2023/08/07/2003804354

https://focustaiwan.tw/business/202308070017

https://focustaiwan.tw/business/202304220007