Greenhouse Gas Emission Source Efficiency Standards Preannounced


To incentivize enterprises to voluntarily reduce emissions ahead of the commencement of the first phase of total greenhouse gas emission control, the EPA has drafted the Performance Standards for Greenhouse Gas Emission Sources (hereafter referred to as the Standards) based on the principle of absolute emission reduction and Article 17 of the Greenhouse Gas Reduction and Management Act. In the meantime, the EPA also amended the Regulations Governing Incentives for Greenhouse Gas Emission Sources to Meet the Performance Standards (hereafter referred to as the Regulations) to help promote the national emission reduction goals.

There are four main items in the Standards, including the scope of emission sources and calculation guidelines and methods. The emission sources stated in the Standards are the first batch of industries required to undergo greenhouse gas auditing and inventories, and which also emit 25,000 metric tons of CO2 equivalent (CO2e) annually. The calculationmainly focuses on the annual emissions. For example, a first-time applicant's performance standard will be the average of the annual emissions for the three years prior to the application year. As for second-time applicants, the new performance standard will be the most recent annual emission that has been approved. Additional incentives will be offered in accordance with the Standards for enterprises to reduce their annual emissions each year.

The incentives are calculated based on the concept of absolute emission reduction, in order to facilitate the execution of the Standards and reach Taiwan’s long term emission reduction goals. The Regulations were also amended to lower any incentives to apply for emission reductions credits based on closure, suspension or permanent shutdown of facilities, as well as to update calculation formulas. Through these changes, the EPA expects to encourage continual emission reduction and to gradually achieve national reduction goals.

Environmental Protection Administration, R.O.C.(Taiwan)
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