The Taiwan Carbon Solution Exchange formally established

Date: 2023-08-10

News Type:

News briefing

The "Taiwan Carbon S Solution Exchange" jointly funded by the Taiwan Stock Exchange Corporation (TWSE) and the National Development Fund (NDF) was established on August 7. The exchange is located in Kaohsiung, and the information center in Taipei. The amount of capital initially planned is between NT$500 million and NT$1 billion.

Impact analysis

The establishment of the Taiwan Carbon Solution Exchange originated from President Tsai Ing-wen’s announcement in April that an independent carbon trading platform would be established in the country. Based on this idea, exchange businesses should comprise trading of domestic carbon rights, and trading and consultation of foreign carbon rights. The exchanges will initially provide consultation services, whereas the details and ways of implementation of trading carbon rights will be put into operation after relevant laws are enacted and take effect. As such, the exchange is scheduled to start by the end of 2023.

At this stage, carbon rights trading can be divided into "mandatory" and "voluntary" according to sources. The TWSE adopts voluntary trading, which provides another trading channel for enterprises to obtain carbon rights, especially for SMEs in Taiwan, which include manufacturers of PCB. This option provides convenience for SMEs, and the basic operating principle is that enterprises can directly invest or put in specific carbon reduction projects to obtain certified carbon rights through the platform. The establishment and future operation of the TWSE is conducive to enterprises aligning with the international community.

Based on the planned "Low-Carbon Transformation Strategy for Taiwan’s PCB Industry", even if the trading of carbon rights is not crucial to carbon reduction initially, it can be of great help to achieve carbon reduction by 30% in 2030 should the trading schedule be brought ahead as the research and development of autonomous energy conservation and procurement of renewable energy are quite challenging. Furthermore, these measures can help companies meet customer requirements and win more orders.

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The Taiwan Carbon Solution Exchange formally established

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