Taiwan’s Interim Work toward the Economy-wide Net-zero Target


In the first decade since the entry into force of the Paris Agreement, Taiwan’s Greenhouse Gas Reduction and Management Act (hereinafter referred to as the “GHG Act”) has legislated a path to link up with the Paris Agreement’s 2°C target.  In order to consolidate its ambition and update the target, Taiwan has started to amend the Greenhouse Gas Reduction and Management Act into the Climate Change Response Act to reach the net zero emission target by 2050.  Accordingly, Taiwan is hereby providing clarity, transparency and understanding of the national determined contributions in accordance with the relevant decisions and provisions of the United Nations Framework Convention on Climate Change (UNFCCC).

1. Fairness and Ambitions

Taiwan’s nationally determined contributions are based on the 2015 INDC, improve BAU reduction target, use the base year (2005) as transparency, and follow the UNFCCC Article 2 as the basis to initiate the work to strengthen reduction ambitions, and endeavor to reach the net-zero emission goal by 2050.

2. Domestic Institutional Arrangements

In response to the Paris Agreement that encourages participation from all walks of life and strengthens the main axis of carbon reduction ambitions, in accordance with the the GHG Act, a five-year phase control target is set in stages, and the National Climate Change Action Guidelines are formulated to show the basic direction of mitigation and adjustment, put forward the Greenhouse Gas Reduction Action Plan, and Greenhouse Gas Emission Control Action Programs for the Sectors, reflecting Taiwan's economy, energy supplies, and environment with consideration of the current international situation.  The central competent authority’s Greenhouse Gas Emissions Control Action Program and local governments' Emission Control Implementation Program will be enforced together with the Energy Management Act and Renewable Energy Development Act for a progressive implementation to effectively manage greenhouse gases and increase energy efficiency.

3. Energy Transition

In 2019, Taiwan passed the amendment to the Renewable Energy Development Act to promote the four major energy transformation strategies of "No Nuke, Expanding Renewables, Increasing Natural Gas, and Reducing Coal", with a view to achieving the goal of 20% of power generation coming from renewable energies by 2025.  The mid-range power generation ratio in 2030 will continue with the current energy transition direction under the premise of ensuring stable power supply.  By 2030, solar photonics will increase the capacity by 1 GW every year, and offshore wind power will increase by 1.5 GW every year.  The proportion of renewable energy will continue to increase, coal combustion will continue to decrease, gas will remain flat, and a pragmatic and dynamic review will be conducted. After 2020, there will be no plans for new coal-fired power plants. Existing nuclear power plants will be decommissioned as scheduled, and gas-fired units will gradually replace coal-fired ones.

4. Green Finance

To support and promote the private sector’s efforts to combat climate change, Taiwan’s Financial Supervisory Commission launched the Green Finance Action Plan 2.0 in 2020. The plan aims to use financial mechanisms to foster awareness of environmental, social, and governance issues among enterprises and investors, and seeks to help renewable energy enterprises obtain funds for development, facilitate the issuance of green bonds, and enhance information transparency. The short-term promotion by 2030 focuses on establishing sustainable financial coverage, improving the quality of ESG information disclosure, strengthening climate-related information disclosure, and revising relevant regulations to keep up with international trends. This green transformation plan will become the basis for strengthening Taiwan's green policy, which is divided into eight area: clean energy, circular economy, resilient construction, low-carbon transportation, innovative research and development, green finance, healthy environment and green life. Specific promotion work includes credit granting, investment, capital market financing, talent cultivation, information disclosure, promoting the development of green financial products or services, prudential supervision, and international linkage, with a total of 38 measures as the incentive mechanism.

5. Carbon Pricing

Based on the legal authorization of the current GHG Act, Taiwan mainly uses emissions trading scheme (ETS) and the domestic offset project (Taiwan offset project) as the main tools for implementing carbon pricing at present.  Among them, the domestic offset mechanism was launched in 2010, and there are many basic elements that support the stable operation of the emissions trading mechanism, and it is still under continuous construction.  On the other hand, in order to increase the application flexibility of carbon pricing tools and improve the effectiveness of reductions, the promotion of a carbon levy is also included in the plan for the revision draft of the Climate Change Response Act with a view to combining with the aforementioned carbon pricing tools in the future. The effect of application, through the incentive mechanism, encourages companies to increase energy efficiency or improve manufacturing processes, thereby reducing carbon emissions.

6. Adaptation

In accordance with the GHG Act’s climate action governance framework, Taiwan approved the National Climate Change Action Guidelines and proposed the National Climate Change Adaptation Action Plan for the first decade of the entry into force of the Paris Agreement as it implements the national climate change adjustment work through the cooperation of ministries and committees.  The work structure is divided into eight areas, including capacity building, disasters, life-sustaining infrastructure, water resources, land use, oceans and coasts, energy supply and industry, agricultural production and biodiversity, and health, including 125 adaptation action plans and 71 priority adaptation action plans.

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Information to facilitate clarity, transparency and understanding of NDCs.pdf
2021-11-08 pdf 136
Environmental Protection Administration, R.O.C.(Taiwan)
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