According to the Ministry of Environment (MOENV), Taiwan is preparing to launch domestic carbon credit trading on the Taiwan Carbon Solution Exchange (TCX) in late September or early October.
This announcement follows the publication of official regulations for trading and transferring domestic carbon credits generated by voluntary emissions reduction projects. These regulations are expected to come into effect on August 15.
MOENVVice Director General Huang Wei-ming explained the delay, citing the need to complete administrative procedures and ensure compatibility between the government’s emission reduction system and the TCX‘s trading platform.
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The new regulations will make the TCX the only authorized platform for auctioning and trading domestic carbon credits.
To ensure safe and transparent transactions, private brokerage and the transfer of these credits will be prohibited.
In addition, MOENV will implement a coding system for carbon credit information, including project type and monitoring duration.
This ensures the validity of credits for trading, auction and compensation purposes, while also preventing misleading environmental claims.
Who can participate?
Only entities whose emission reduction projects have been approved by the government are eligible to sell or auction domestic carbon credits.
Buyers are limited to those authorized to offset their emissions under Section 26 of the Climate Change Response Act.
This also applies to major emitters who produce more than 25,000 tonnes of carbon dioxide equivalent annually and who will face a CO2 fee later in 2024.
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To maintain market stability, buyers are not allowed to resell their acquired domestic carbon credits on the TCX.
Although the finalization of the carbon tariff was originally planned in the first quarter, there have been significant delays.
The committee’s fourth meeting to review the fee is scheduled for later this week.
In May, the MOENV proposed a preferential system for payers of carbon taxes. Those using domestic emissions reduction credits would receive a ratio of 1.2 (meaning 1 tonne of credit could offset 1.2 tonnes of emissions), with up to 10% of their taxable emissions offset.
