Taiwan will soon finalize legal preparations for a carbon trading mechanism, providing incentives for local manufacturers to cut down on greenhouse gas emissions, according to the Environmental Protection Administration May 29.
“Companies that would like to engage voluntarily in carbon reduction practices can start now by registering with an online EPA platform, so they can be first in line for carbon credit transactions once all relevant regulations are in place,” the agency said.
By the end of this year, the EPA plans to register with the U.K. Emissions Trading Group, one of two organizations that handle international cap-and-trade deals, to allow Taiwan firms to participate in international trading of carbon credits.
The EPA is still awaiting Legislative Yuan approval of a bill on greenhouse gas reduction, however, to effectively regulate the carbon emissions of local firms, the EPA said. It could take three to five more years before all related legal procedures are completed.
The cap-and-trade mechanism is an internationally recognized way to regulate greenhouse gas emissions. Firms set up a cap on permitted emissions and sell spare credits to enterprises that do not have enough allowances to neutralize their carbon emissions. (THN)
Write to Kwangyin Liu at kyliu01@mofa.gov.tw