Peng Chi-ming
Minister of Environment / Republic of China (Taiwan)
Climate change has greatly affected countries around the world. As a member of the international community, Taiwan also faces serious challenges in this area. In recent years, we have witnessed the most severe drought in a century, and intense rainfall and devastating typhoons.
President Lai Ching-te is promoting five key strategies for a transition to “net zero.” These involve initiating a second energy transition; accelerating the development of renewable energy sources, such as geothermal, hydrogen, biomass and ocean; driving a dual digital and green transformation of our industries; and building “net zero” lifestyles.In this way, we are pushing toward a just transition that leaves no one behind.
In June, the National Climate Change Response Committee attached to Taiwan’s Presidential Office was established to address climate governance and international cooperation from a national development perspective. The committee focuses on seven areas: the path to “net zero,” technologies for diverse green energy and carbon reduction, dual green and digital transformation, sustainable green lifestyles, just transition, sustainable green finance, and a sustainable homeland and adaptive resilience. The committee enables better communication of the government’s response to climate change, accelerates policy implementation, and strengthens public participation.
Taiwan is adapting numerous measures to address climate change. As a sign of its commitment to reducing emissions, it has incorporated the goal of net zero emissions by 2050 into the Climate Change Response Act. In turn, it has completed its legal framework to establish a carbon fee system, similar to a global carbon tax, which will come into effect in 2025. Companies will begin submitting test reports in mid-2025 with an initial standard fee of approximately US$10 per tonne of carbon dioxide equivalent (tCO2e). The tariff will be subject to gradual increases based on the recommendations of the Carbon Tariff Review Committee, until it reaches, by 2030, a level that reflects international standards of between US$40 and US$60 per tCO2e. Taiwan has also committed to implement an emissions trading system over the next four years that will further integrate it with global markets. These policies align with Article 6 of the Paris Agreement, which encourages international collaboration on climate action through market mechanisms such as carbon pricing to achieve more ambitious climate targets.
The carbon tariff is only the first step in Taiwan’s carbon pricing system. Next, Taiwan will launch three major funds to stimulate the development of green industries. The Green Growth Fund of 10 billion Taiwanese dollars (about 288.2 billion euros) will be established to stimulate the growth of emerging domestic net zero-emission industries. Funding from the financial and insurance sectors will support the Green Finance Innovation Fund for long-term investments in energy-saving, net-zero emission and circular resource industries. Finally, the Taiwan Net Zero Fund will work to meet national and international carbon emission reduction targets by partnering with domestic emission-intensive industries, venture capital firms and financial institutions to evaluate and invest in various carbon reduction technologies. This fund will also incorporate Taiwan’s leading enterprises into global carbon reduction strategies, accelerate net zero emissions initiatives, and attract greater green investment. These measures will strengthen Taiwan’s international competitiveness and are in line with Article 9 of the Paris Agreement, which calls on developed countries to mobilize various sources of climate finance, and will lay a solid foundation for Taiwan’s sustainable development.
In terms of adaptation, Taiwan published its latest National Climate Change Science Report in May. It provides key scientific data for local governments and ministries in their short- and medium-term adaptation planning. It also addresses the development of early warning mechanisms and monitoring systems to improve urban environmental resilience. A multilevel disaster prevention system incorporating prediction, response and recovery measures will be established to improve response capabilities and build a resilient nation through integrated disaster prevention, adaptation and net zero emission targets. This aligns with Article 7 of the Paris Agreement, which calls on all parties to promote and implement adaptation policies. Taiwan will continue to use early warning systems and monitoring measures to refine national adaptation policies.
As a major economy and hub of technological innovation, Taiwan’s capabilities in renewable energy, climate change adaptation and low-carbon technological innovation can be of great help to global climate governance. Innovation and implementation will be crucial drivers of climate action. With the advent of carbon pricing and the promotion of related innovative technologies, Taiwan will participate in global climate action through improved national policies and systems. We hope that the international community will recognize that Taiwan is willing and able to contribute to global efforts against climate change.
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