In 2023, our country embarked on a new chapter in climate action. In February, President Tsai announced the implementation of the “Climate Change Response Act”, legally binding the 2050 net zero target. This elevates our commitment from policy declaration to legal regulation. In April, the Executive Yuan approved the " Taiwan’s 2050 Net-Zero Transition 12 Key Strategies" to integrate cross-ministerial resources and accelerate the transformation. In August, the Taiwan Carbon Solution Exchange (TCX), jointly funded by the Taiwan Stock Exchange and the National Development Fund of the Executive Yuan, officially commenced operations. The TCX recognize that carbon credit trading is critical to achieving net zero. By establishing a trading platform and introducing market mechanisms, we create incentives for businesses to reduce carbon emissions, which not only has economic benefits but also accelerates the transition to net zero, demonstrating our commitment to achieving this goal.
Early Focus on Talent Development–Solidifying the Net Zero Foundation
The TCX believes that the key to fulfilling our promises lies in execution. We are progressing towards creating a comprehensive carbon market solution. Initially focusing on education and talent development, the TCX had organized forums in the north, center, and south regions to promote exchanges and dialogues. We offer three types of courses: general knowledge, certification, and professional topics, to explore feasible low-carbon transformation paths and strategies. This helps businesses fully understand carbon management and trading, solidifying the foundation for Taiwan's net zero goal and enhancing the resilience of enterprises' operations.
Addressing Supply Chain Carbon Reduction – Prioritizing International Carbon Credit Trading
To meet international supply chain carbon reduction requirements and business needs for carbon neutrality, the TCX launched an international carbon credit trading platform on December 22. By setting relevant standards and offering carbon credits certified by internationally recognized institutions, we enhance product transparency. The TCX adopts a prepayment method for carbon credits and funds, safeguarding transactional security through bank trust accounts, thereby reducing transaction complexity. In the future, in addition to aligning with national policies and planning domestic carbon credit trading services, the TCX will gradually allow small-and medium-enterprises to participate in international carbon credit trading, accelerating Taiwan’s industry transition to net zero.
Connecting Globally – Fostering a Low-Carbon Industry
The 2050 net zero transformation is a long-term project that spans generations, fields, and borders. The TCX continues to collaborate with industry, government, academia, and research institutions, bringing together diverse ideas and capital to address climate action, thereby contributing to climate policy. As global cooperation opportunities increase, we actively participate in international organizations and related events. This not only facilitates systemic integration but also, through synergizing efforts with stakeholders and learning best practices, enhances the operational efficiency and visibility of our carbon market. The TCX can also leverage the TWSE's resources to direct funding into Taiwan’s low-carbon innovative technologies, accelerating the formation of a low-carbon emerging industry cluster, and fostering a green ethical cycle.
Finally, I would like to conclude with a quote from Inger Andersen, the Executive Director of the United Nations Environment Programme: "If finance won’t move, the world won’t move." We firmly believe that the flow of funds can change corporate behavior. The launch of our international carbon credit trading platform this month is a prime symbol of this belief. The TCX will continue to lead the Taiwan carbon market forward with sustainable development in mind, influencing industrial development with a responsible civic spirit, and actively facing climate challenges together.