The Taiwan Carbon Solution Exchange (TCX) successfully hosted the Global Carbon Market Forum on March 21 during the 2050 Net Zero City Expo. This forum brought together representatives from international carbon trading markets, including the German Emissions Trading Authority (DEHSt), the Tokyo Stock Exchange (TSE), the Singapore Climate Impact Exchange (CIX), and the London Stock Exchange Group (LSEG). The event attracted over 150 domestic and international exhibitors, ESG leaders, and media professionals.
In the opening address, TCX Chairman Sherman Lin emphasized that carbon pricing and trading have become essential tools for countries worldwide to accelerate their net-zero goals. Taiwan is no exception. In February 2023, President Tsai announced the Climate Change Response Act, and in August of the same year, the TCX was established to facilitate carbon credit transactions. In December 2023, the TCX international carbon trading platform was launched, marking a significant step toward supporting industries in achieving carbon neutrality. This forum provided a valuable opportunity for Taiwan to learn from the latest developments and trends in carbon trading markets worldwide, aligning with international standards and moving toward a net-zero future.
TCX CEO Joshua Tien highlighted the unique features of Taiwan’s international carbon trading platform: it is denominated in US dollars, trades in one ton CO2e units, and operates with trust accounts. Looking ahead, Taiwan aims to further enhance its carbon market mechanisms under relevant regulations, assisting businesses in their decarbonization efforts. The forum can be seen as the first step in collaboration between the TCX and international partners, with expectations for deeper cooperation with exchanges from various countries in the future.
Dr. Jürgen Landgrebe, Head of Department V at the German Emissions Trading Authority, discussed the EU’s successful carbon trading system and the Fit-for-55 initiative. Since 2005, the EU has reduced carbon emissions by nearly 38%, and it continues to plan for emissions reductions in maritime, construction, transportation, and other small-scale industries to achieve the goals set by the Paris Agreement.
Saki Kawakubo, General Manager of the Carbon Credit Market Office at the Tokyo Stock Exchange, stated that the Japanese government formed the voluntary GX League in February 2022, with a 10-year plan to align with the GX-ETS. The exchange launched the J-Credit carbon credit market in October 2023 to promote voluntary decarbonization efforts among companies. Currently, 257 companies participate in J-Credit trading, with five financial institutions acting as market makers. The exchange plans to expand the scope of project types to support Japan’s green transition.
Joyce Goh, Commercial Director of the Singapore Climate Impact X, explained Singapore’s phased carbon tax system, which encourages investment in low-carbon technologies. The system allows 5% of the carbon tax to be offset by compliant international carbon credits. In response, Singapore’s Temasek Holdings, the Singapore Exchange, and several financial partners jointly established CIX, offering three trading platforms (Marketplace, Auction, and Exchange) for enterprises seeking international carbon credits.
Boyang Jin, Energy Transition Senior Analyst at the London Stock Exchange Group, emphasized that while past EU emissions reductions primarily came from the power sector, future efforts will focus on manufacturing. He also discussed the price of EU Allowances (EUAs), which is significantly influenced by economic conditions and energy prices. He expects EUA prices to reach €150 by 2030. Comparing the China’s Carbon Emission Trading System (CNETS) and EUETS, he noted that CNETS has gradually matured since its launch in 2021 and will continue to expand its regulatory scope by including cement, civil aviation, and aluminum electrolysis industries.
During the panel discussion, Robert Shih, General Manager of YC Holdings Inc., led a conversation on how to ensure carbon credit quality and integrity. Representatives from various countries agreed that quality assurance is crucial for voluntary carbon markets, emphasizing the need to avoid double counting, issuance, and use of carbon credits. Saki Kawakubo also highlighted the importance of third-party guarantees to strengthen carbon credit quality.
The panel also discussed the outlook and international cooperation in carbon markets. As carbon markets become essential policy tools for countries worldwide, representatives unanimously recognized the importance of economic incentives to strengthen national decarbonization efforts. They believe that global carbon markets will continue to thrive, especially as more countries provide financial and technological support for carbon reduction. International cooperation will play a vital role in achieving global greenhouse gas emission reduction goals and working toward the 2050 net-zero target.
Sources: Taiwan Carbon Solution Exchange
