Climate change is accelerating. Severe weather caused by global warming lashes many countries and caused serious consequences. There is simply no time to waste in finding the rightful means of mitigation. Reducing the greenhouse gas emissions has become the common consensus and action all around the world, market mechanism rises as one of the solutions.
The first market mechanism was established by the Kyoto Protocol which entered into force in 2005. It had laid the foundation for the development of market mechanism in the world. The EU, California, New Zealand, Quebec, South Korea, China and many countries have followed the path and built up its own domestic carbon market.
A stable market mechanism takes years of policy discussion and formulation, capacity building of stakeholders, and the participation of international and domestic experts to construct. The experience in cooperation on building carbon markets among countries and international organizations is also essential to provide reference for government regulation policy in the near future, while success stories can be seen in cases such as EU with South Korea and China, the World Bank with Vietnam, Thailand, Indonesia, and IETA with Kazakhstan and international businesses。
Taiwan started to establish the domestic cap and trade system and drafted the related regulation after announcing the “Greenhouse Gas Emissions Reeducation ＆ Management Act” in 2015. Taiwan has also maintained close contact and cooperation with other countries and international organizations aiming to promote capacity building among stakeholders.
The main purpose of this project: (1) To follow up the status and trend of international and regional carbon markets; (2) To initiate the technical cooperation of carbon market between Taiwan and Germany; (3) To maintain our presence in the discussion activities and meeting of IETA; (4) To study the utilization of carbon market simulation tools.
Through collecting and researching the latest carbon pricing reports of international organizations and countries, the project aims to follow up the status and trend of international and regional carbon markets, to analyze the latest development of international carbon pricing mechanism, and to assist Environmental Protection Agency(EPA) in developing relevant coping strategies. This project analyzes the relationship between the international carbon pricing mechanism and the effect of greenhouse gas emission reduction, the mode of carbon market mutual recognition, and the characteristics and development trend of voluntary carbon market.
In response to the agency's bilateral cooperation on carbon market between Taiwan and Germany, the project facilitates in promoting the technical exchange of the carbon market mechanism, and formulates the medium and long-term cooperation topics for emissions trading system between Taiwan and Germany in accordance with the policy needs of the EPA. Also, this project arranges and attends the study tour to Berlin from June 22 to 29, 2019.
Considering Taiwan’s special national conditions, it is unable to substantially participate in the COP meetings and the Paris Agreement, which has a profound impact on Taiwan’s policies to promote mitigation and adaptation of climate change. This project becomes a member of IETA in 2019, which assists the EPA in researching the latest policy developments and ways of participation of IETA and ICAP, and integrate position and planning on Taiwan’s participation in Article 6 of the Paris Agreement. Through IETA, this project incorporates proposal on Taiwan’s favorable position on Article 6 of the Paris Agreement. Finally, this project facilitates the EPA to take part in meetings and exhibitions through IETA in the pavilion at COP, and in seeking cooperation with other friendly countries and major international organizations.
This project researches and analyzes the international carbon market simulation applications and case studies, including CarbonSim (in Mexico), EPC ETS (in Brazil), as well as the introduction of China’s carbon simulation program, purpose, method of use and situation, in order to assess the feasibility and future application of domestic use, and to provide suggestions for Taiwan’s carbon market simulation applications and timing.
In addition, this project communicates and keeps in touch with important international organizations through participating in COP24 and COP25, which can be considered as future invitation list of experts of capacity building in Taiwan, and serves as the basis of subsequent planning and promoting international connectivity.