News Room - Business/Economics

Posted on 07 Aug 2023

Taiwan establishes carbon rights exchange

Taiwan’s Carbon Rights Exchange (CRE) is set to launch on Monday, 7 August, under the joint supervision of the National Development Council and the Taiwan Stock Exchange Corporation, Kallanish notes.

CRE is headquartered in Kaohsiung, with a dual operation model in Kaohsiung and Taipei. The business of consultation will be conducted first, followed by trading of overseas carbon rights.

Domestic carbon rights trading still has to wait for the implementation of related laws. These laws are still under discussion, and are expected to be in place by the end of this year. Carbon rights are also to be allowed to be sold by individuals to companies. CRE has scheduled three parallel schemes for carbon trading, for domestic, international, and private credits (see Kallanish 14 June).

Carbon costs are planned to be imposed in the first half of next year, on manufacturers that emit more than 25,000 tonnes/year of CO2 at first. 287 companies have been included in the list, with total CO2 emissions at around 285 million tonnes in 2020. This accounts for about 78.25% of Taiwan’s total CO2 emissions that year.

Among these companies, Taiwan’s largest steelmaker, China Steel Corporation, emitted 19.42mt of CO2 directly and indirectly in 2020, and plans to achieve carbon neutrality in 2050.

Source:Kallanish