Taiwan Carbon Solution Exchange signs MOU with European counterpart

Taipei, June 30 (CNA) The Taiwan Carbon Solution Exchange (TCX) signed a memorandum of understanding (MOU) with the European Energy Exchange (EEX), the main trading platform of the European Union Emission Trading Scheme (EU ETS), in Germany on Friday.

The MOU is aimed at helping the TCX build a transparent, robust and trustworthy ETS market in Taiwan by leveraging the successful operational experience of the European Union, the TCX said in a statement Monday.

During the signing ceremony, EEX CEO Peter Reitz said global carbon emission trading mechanisms are critical to achieving decarbonization and energy transition.

He said the EEX was happy to share its rich expertise in system design and operations to support the establishment of new mechanisms and jointly advance global carbon pricing and trading markets, according to the statement.

The TCX described the signing as a new milestone in Taiwan's efforts toward establishing its own cap-and-trade emissions trading scheme.

TCX CEO Joshua Tien (田建中) said that since its launch in 2005, the EU ETS has become the world's leading carbon pricing mechanism, with the EEX playing a key role in carbon emission trading operations.

TCX is actively planning to pilot Taiwan's ETS mechanism next year in line with the Ministry of Environment's policy roadmap, Tien said, and the MOU enables Taiwan to draw on the EEX's extensive experience in market operations to support that.

According to the TCX, the EU ETS has already linked with Switzerland's ETS and is planning further connection with the UK ETS as it gradually expands toward a global carbon trading system through international cooperation.

Countries near Taiwan, including Japan and South Korea, have already established or are actively promoting their own ETS mechanisms, and this MOU will pave the way for Taiwan's future integration with other carbon markets, the TCX said in the statement.