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International carbon credits to be available next month: TCX

11/29/2023 09:54 PM
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Scholars and officials exchanged opinions at a carbon trading forum on Wednesday in Taipei. CNA photo Nov. 29, 2023
Scholars and officials exchanged opinions at a carbon trading forum on Wednesday in Taipei. CNA photo Nov. 29, 2023

Taipei, Nov. 29 (CNA) Taiwan Carbon Solution Exchange (TCX) executives said Wednesday the opening of accounts for international carbon credit trading on the TCX has started, but the first batch of international carbon credits -- slated to be introduced on the exchange in December -- will not be able to offset carbon fees at the current stage.

TCX Chairman Sherman Lin (林修銘) made the comments at a carbon trade forum held by the TCX in Taipei for the first time, noting TCX started allowing companies to open accounts for international carbon credit purchase on the platform last Friday.

Tien Chien-chung (田建中), general manager of the Exchange, added that although the Climate Change Response Act stipulates that international carbon credits can partly offset carbon fees, as the Ministry of Environment is not scheduled to announce carbon fee-related regulations until early next year, the international carbon credits placed on the TCX in December will not be able to offset carbon fees.

Companies in Taiwan that emit more than 25,000 metric tons of carbon per year are required to pay carbon fees starting in 2025, the amount of which will be determined by calculations undertaken in 2024.

"The international carbon credits the TCX plans to offer in December will be only for enterprises to fulfill their responsibilities as part of the international supply chain [of multinational corporations seeking to meet the goal of carbon neutrality], or for listed companies' sustainability reports," Tien said.

The two TCX executives said that trades will be undertaken in a secure manner. After opening an account, "advance payments will have to be placed in the account and [TCX will take on] fiduciary responsibility to ensure the security of buyer's payments," Lin said.

"After an [international carbon credit] project is purchased on the exchange, the buying enterprise will be able to download a receipt and certificate issued by the TCX," Tien explained.

Lin stressed that TCX will be a safe and inclusive platform, on which only high-quality carbon credits certified by trusted and professional institutions will be offered.

It has been reported that international voluntary carbon markets have started to shrink due to scandals about the source of credits, or concerns about "green-washing" -- concerns that companies with the option to buy credits will not make efforts to reduce carbon emissions themselves.

In response, Tien cited a report published in early October that found of the more than 7,000 companies that have purchased carbon credits on markets covered by the study, "most of them have made three times more effort in carbon reduction -- other than purchasing carbon credits - compared to those who have not purchased any credits.

He upheld the need for voluntary carbon credits as a measure to help enterprises decarbonize and save the planet from global warming, "as the report shows those who buy carbon credits are the ones who take 'climate actions.'"

(By Alison Hsiao)

Enditem/AW

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