Domestic carbon credit exchange platform to launch in October: TCX

Taipei, Aug. 29 (CNA) Taiwan's domestic carbon credit exchange platform will launch on Oct. 2, Taiwan Carbon Solution Exchange (TCX) CEO Joshua Tien (田建中) has said.

Tien told a forum Wednesday in Taipei that the TCX had been engaged in discussions with the Ministry of Environment over the details of domestic carbon credit trading since related regulations came into effect on Aug. 15.

As a carbon fee scheme under which those who emit more than 25,000 metric tons of carbon dioxide equivalent a year will be charged with carbon fees has yet to start, he said the trading platform launched on Oct. 2 will mainly be for those planning to build new factories.

Regulations announced last October require those setting up new factories of a certain scale and developers of high-rise construction projects to partly offset newly generated emissions by buying carbon credits from voluntary projects or implementing other offsetting measures.

Those offsetting measures, which generate carbon credits, include switching to high-efficiency equipment and other effective energy-saving replacements.

Voluntary carbon emission reduction projects, on the other hand, according to another regulation, can be undertaken by enterprises or government entities that emit less than 25,000 metric tons of carbon dioxide a year.

The projects must follow the internationally accepted MRV (measurable, reportable and verifiable) guidance.

According to Tien, carbon credits generated from offsetting projects will be able to be sold on the platform first to buyers seeking to meet environment assessment requirements, such as construction and development projects.

He said domestic carbon credits could be used to partly offset soon-to-be-collected carbon fees, adding that purchasing carbon credits was better for corporate image than simply paying the fees.

Chargeable emissions will be calculated from the date when the carbon fee rate is officially announced, according to regulations on carbon fee collection announced on Thursday.

According to Environment Minister Peng Chi-ming (彭啟明), the rate will be set before the end of this year.

Fee collection will not begin until 2026, with 2025 acting as a preparation window for fee-paying enterprises, the environment ministry said.

However, fee-liable businesses will still be required to report their 2024 emissions during this grace period.

The TCX started the sale of international carbon credits last December for domestic enterprises to meet international carbon neutrality or supply chain requirements.