Taiwan's new carbon market could take a cue from Singapore
Taiwan is joining the pack of Asian economies looking to use carbon markets to springboard their net-zero aspirations.
The Taiwan Stock Exchange is teaming up with the National Development Fund to establish a carbon-trading platform. The exchange is aimed at supporting Taiwanese companies along their net-zero journeys by enabling them to trade both domestic and international carbon credits.
This marketplace will first focus on facilitating the purchase of international credits, until there is more clarity on emissions reduction targets for corporations and details of a planned carbon fee. Taiwan may also be taking notes from neighbors like Singapore on best practices.
Creating a domestic voluntary carbon market platform allows Taiwanese companies to procure offset credits to meet their own net-zero ambitions. The first stage will be to help local firms purchase overseas carbon credits.
Some corporations have already been tapping the international market. Taiwanese materials producer Chimei joined Singapore’s Climate Impact X marketplace in April last year, and semiconductor supplier Winbond Electronics followed suit in September.
At some point, Taiwan may also look to create its own domestic supply of carbon offset credits – particularly leveraging its agriculture sector. The new platform is expected to be where companies will eventually trade their carbon credit allocations once a carbon pricing mechanism is implemented.
Alongside the new marketplace, a policy draft of Taiwan’s proposed ‘carbon fee’, or ‘carbon levy scheme’, from the Environmental Protection Administration should be released in August.
