The Paris Agreement represents mankind’s joint effort to mitigate climate change. In addition, carbon pricing has become one of the important policy tools for governments to achieve a low-carbon economy. The global carbon market derived from the emission trading among enterprises under market mechanisms has rapidly grown to more than US$450 billion in 2019. Through the potential linkage among international trading systems, the global carbon market is expected to develop rapidly in the future. For industries, a high liquidity in emissions trading can increase the flexibility of operation, as well as achieve mutual benefit for the environment and the economy.
In 2015, Taiwan adopted the "Greenhouse Gas Reduction Act" to set a clear reduction target. By 2050, the greenhouse gas emissions will be reduced to less than 50% of the 2005 emissions. Taiwan EPA will consider UN Framework Convention on Climate Change and other relevant international agreements and convention resolution, in order to establish a domestic cap-and-trade, offset, auction, allocate and sales system for greenhouse gases.
In June 2018, Taiwan and Germany formally signed the "Taiwan-Germany cooperation agreement", which officially launched the bilateral long-term cooperation on emissions trading system. The following year in June 2019, Taiwan EPA led a delegation to participate in the carbon market capacity building course organized by the German Emissions Trading Authority. By participating in relevant international organizations, Taiwan can strengthen its greenhouse gas management policy, with experience learning and international linkage, and effectively play in the international arena to enhance our visibility, and develop strategic partnerships with international organizations. Such partnerships can promote Taiwan's participation in global greenhouse gas reduction management and promote low-carbon transformation of domestic industries.
The main purposes of this project are to: (1) promote bilateral cooperation in the carbon market between Taiwan and Germany, and exchange in greenhouse gas reduction technologies and systems; (2) maintain international channels and demonstrate to the international community the effectiveness of Taiwan's efforts to promote greenhouse gas emission reduction management; (3) assess the review mechanism of Taiwan's carbon market pricing; and (4) establish a mechanism for assessing the potential of carbon leakage and its impact on national competitiveness.