Carbon Exchange takes off in Taiwan

Ministry of Power recently notified carbon credit framework. Photo by: Freepik

Taiwan has officially stepped into the realm of carbon pricing with the formal inauguration of the Taiwan Carbon Solution Exchange (TCX). The country’s carbon exchange commenced its inaugural day with a series of international carbon credit transactions.

These initial trades on the very first day of the exchange involved seven countries spanning South America, Asia, and Africa. The participating project developers hailed from diverse geographical locations, including Switzerland, Singapore, and the UK.

The spectrum of project types covered a range of areas, from renewable energy sources like wind and solar to biogas power plants and clean water sources. Notably, one of the significant transactions on TCX’s debut day involved the exchange of 6,257 tons of carbon credits from Taiwanese seller Sacurn Carbon. These credits were generated through a biogas project in Kenya.

The introduction of the Taiwan Carbon Exchange will empower companies within the nation to actively pursue their climate objectives and achieve emissions reduction targets. Importantly, it provides these companies with a unique opportunity to transition from being buyers to sellers, disrupting the traditional buyer-centric model.

Tien Chien-Chung, General Manager of TCX, highlighted variations in the demand for carbon credits among different companies, emphasizing their diverse emissions reduction goals.

Tien also underscored a notable lack of understanding about carbon credits among corporations and emphasized the imperative for Taiwan’s industries to engage with international carbon markets to address the island nation’s high carbon intensity.