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Taiwan Carbon Market conducts first international transaction

Taiwan Carbon Market conducts first international transaction

 

Recently, the Taiwan Carbon Solutions Exchange (TCX) started the first international carbon credit transactions, ushering in the era of Taiwan's carbon pricing. TCX general manager Tien Chien-Chung commented that in the long term, companies with plans to reduce emissions may shift from buyers to sellers, challenging the conventional buyer-focused model. The importance of international carbon credits goes beyond Taiwan's industries, playing a key role in achieving global carbon reduction goals. 

During the Taiwan ESG Forum 2023: Green Transition to a Net-zero Circular Future, Mr. Tien highlighted that the initial carbon credits cover seven countries in Asia, Africa and South America. Developers from the UK, Taiwan, Singapore and Switzerland are involved in diverse projects, including clean water resources, wind power, solar power and biogas electricity generation. 

One notable aspect is that among the first projects transacted, for a total of 88.520 tonnes of CO2e (CO2 equivalent), the only Taiwanese seller was Sacurn Carbon. The company has successfully traded approximately 6.257 tons of carbon credits from a biogas project in Kenya on TCX's international carbon credit trading platform, which was officially launched on December 22. 

Sacurn Carbon explains that biogas electricity production involves anaerobic digestion of organic waste followed by purification, creating methane-rich biogas. This biogas can be used to produce heat for generators, converting it into electricity. 

Discussing the market demand for carbon credit trading, Mr. Tien shared insights gleaned from visits to various large enterprises. He noted the need for diverse carbon credits based on each company's unique carbon reduction goals. 

In addition to different purposes, Mr. Tien highlighted a notable gap in understanding carbon credits among businesses. Although many businesses are familiar with RE100, demand for renewable energy certification is high in Taiwan, especially for semiconductor manufacturers. 

Mr. Tien emphasized that international surveys show that businesses willing to invest in carbon credits are those that actively participate in climate action. Given Taiwan's geographical constraints and high carbon emission intensity, relying solely on domestic carbon credit issuance would pose significant challenges. Therefore, international carbon credits are inevitable for Taiwan's industries. 

Dr. Niven Huang, Managing Director of KPMG Sustainability Consulting, shared insights on Taiwan's 2022 commitment to transition to net zero emissions by 0. Projected annual investment NT$2050 billion for net-zero emissions development, he emphasized the vast business opportunities this transition will bring. Publicly listed companies will come under pressure from international capital markets to improve their carbon management practices, requiring increased capital investments and increased low-carbon marketing efforts. 

In Taiwan's low-carbon transition, companies must seize opportunities and turn them into competitive advantages in the evolving carbon market. 

 * Source: Digitimes Asia

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