On Feb. 23, ROC Premier Sean C. Chen said the government will redouble efforts to get its energy tax and greenhouse gas reduction bills ready to go before the Legislature during the current session. He believes that fast-tracking passage of the bills is essential if the nation is to succeed in boosting energy utilization and helping put the brakes on climate change.
The premier’s eagerness to make real headway on lowering Taiwan’s energy intensity and carbon dioxide emissions underscores a personal commitment to transforming Taiwan into a low-carbon LOHAS, or lifestyle of health and sustainability, homeland. But Chen cannot accomplish this goal on his own; he needs the Ministry of Finance and ruling Kuomintang lawmakers to play their respective parts in preparing the bills and ensuring they move through the Legislature without delay.
To date, the MOF has found finalizing the energy tax tougher than expected. This stems largely from the legislation’s complexity and the last-minute decision to include commodity and carbon levies, treating the petroleum fund and air and soil pollution charges separately for now.
The energy tax, which applies to all fossil fuels retailed in Taiwan, will initially be set at a low rate so as to keep public opposition to a minimum. The charge on gasoline and diesel, for example, is expected to be around NT$1 (US$0.03) per liter.
MOF estimates have additional revenues of NT$90 billion a year flowing into the government coffers as a result of the measure. These funds will be used for general purpose tax reductions and subsidizing energy efficient household appliances and public transportation.
Other changes being considered include opening a five-year window for consumers to save NT$25,000 off the price of automobiles running on liquefied petroleum gas, and local governments being greenlighted to grant license tax exemptions for electric vehicles. These measures should boost sales, adding further torque to government efforts aimed at cutting emissions and encouraging industries to invest in developing low-carbon transportation.
The LOHAS legislation reaffirms that policies slashing greenhouse gas emissions are more important than ever given Taiwan’s contribution as an industrialized economy to this growing global problem. According to the Environmental Protection Administration, the island accounts for roughly 1 percent of the world’s emissions per year.
(Courtesy of the Ministry of Economic Affairs)As a responsible member of the international community, Taiwan is doing more than paying just lip service to this state of affairs. ROC President Ma Ying-jeou takes every opportunity to highlight his administration’s goals of reducing carbon dioxide outputs and cutting energy intensity—key factors in slowing resource depletion and building a sustainable energy future.
After Ma took office in May 2008, he announced his target of stabilizing Taiwan’s emissions at 2008 levels by 2020. The EPA later expanded this to a three-step target to bring the country’s outputs down to 2008 levels by 2020; to 2000 levels by 2025; and to half of 2000 levels by 2050.
The Legislature has played an important part in assisting the government to achieve its emissions goals. On June 12, 2009, it passed the Renewable Energy Act aimed at promoting the use of green power, diversifying supplies and helping reduce outputs. The new law authorizes the government to enhance incentives for the development of renewable sources like the sun, wind, water, biomass and biogas.
But this push to create a greener Taiwan and reduce emissions is not the exclusive domain of the central government. The island’s five special municipalities— Kaohsiung, New Taipei, Taichung, Taipei and Tainan cities—are leading regional efforts to reduce emissions through implementing international standards. In addition, a raft of polices cutting outputs have been formulated, including developing nuclear energy, low-carbon architecture and green transportation.
One noteworthy initiative has been the EPA’s drafting of an emissions management system for Taiwan’s cities. Based on an outputs analysis created by the Germany-headquartered ICLEI - Local Governments for Sustainability, the system will be used to monitor emissions in their municipalities and implement targeted reductions.
Since 2005, nine of Taiwan’s 22 local governments have joined ICLEI, an international association of 1,200 cities committed to sustainable development. Of these special municipalities, Kaohsiung has been particularly active in seizing the climate change challenge by the scruff of the neck. There is good reason for this: EPA figures on carbon dioxide equivalents confirm the city as having the highest CDE nationwide at 39.75 million metric tons. In comparison, Taichung, New Taipei City, Taipei and Tainan reported 26.44, 21.22, 16.82 and 14.69 million metric tons, respectively.
Given the importance attached to the issue of climate change by Chen and the central and local governments, it comes as no surprise that enlightened policymaking with a strong focus on reducing greenhouse gas emissions is the order of the day. The government has definitely answered the call for a strong response to the global challenge of climate change—a vital step in keeping this threat at bay.
John Wren is a freelance writer based in Keelung. These views are the author’s and not necessarily those of Taiwan Today. Copyright © 2012 by John Wren
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