Domestic carbon credit sales to begin on TCX 'Sept. or Oct.': MOENV

Taipei, July 2 (CNA) The Ministry of Environment (MOENV) said Monday it expects sales of domestic carbon credits on the Taiwan Carbon Solution Exchange (TCX) to begin by late September or early October.

The MOENV gave the timeline following the public release of regulations on the trade and transfer of domestic carbon credits from voluntary emission reduction projects set to be introduced on Aug. 15.

MOENV Climate Change Administration Deputy Director-General Huang Wei-ming (黃偉鳴) told CNA that the estimate was based on the time needed to complete administrative procedures.

"We can only commission the TCX to be the trading platform with the regulations in place, and time is needed for our system on emission reduction to coordinate with the TCX's trading system," he added.

Under the regulations, the TCX will be the only certified platform for the trade and auction of domestic carbon credits.

According to the MOENV, the regulations, including the ban on private brokerage, consignment or trade of domestic carbon credits, guarantee trade security and ensure transparency.

Information about the credits, such as project type and duration of the monitor, will be coded to ensure the effectiveness of the credits for trade, auction, and use (for carbon offset) and to prevent "greenwashing," the ministry said.

Only sellers who have had their emission reduction projects overseen by the government will be permitted to auction or sell domestic carbon credits, the MOENV said.

The buyers will be limited to those allowed to acquire carbon credits to offset their emissions under Article 26 of the Climate Change Response Act, including those who emit more than 25,000 metric tons of carbon dioxide equivalent per year and are scheduled to be charged with carbon fees later this year.

In addition, buyers will be banned from reselling traded or auctioned domestic carbon credits on the TCX to "ensure market stability," the ministry said.

While the ministry had said the carbon fee rate was to be finalized in the first quarter, the schedule has been much delayed. The fourth meeting of the carbon fee rate review committee is slated to take place later this week.

In May, the ministry said carbon fee payers would be able to have a preferential ratio of 1.2 for using domestic emission reduction credits from voluntary reduction projects (i.e., a metric ton of credits would be able to offset 1.2 metric tons) but a cap of 10 percent would be placed on carbon fee payers' chargeable emissions.