First green carbon project listed on Taiwan Carbon Solution Exchange

Taipei, July 1 (CNA) The Taiwan Carbon Solution Exchange (TCX) listed its first green carbon project on Monday, which it expects will generate carbon credits for 10,000 tons of carbon, the TCX said in a statement.

The newly listed project is an afforestation initiative in eastern Paraguay, a diplomatic ally of Taiwan, and carbon credits for the project are available for purchase, the TCX said.

It provided no other details in its statement on the nature of the project or how far along it is.

The exchange said it was crucial for Paraguay to receive support to develop and protect forests and promote carbon reduction initiatives because its current regulations on forest cultivation are underdeveloped, the exchange said.

Also, a significant share of Paraguay's land is used for beef production and soy cultivation, the TCX said.

According to Greenpeace Taiwan, beef has the biggest carbon footprint of any food. The World Wildlife Fund has said that soy cultivation contributes to carbon emissions and to deforestation in many South American countries, including Paraguay.

The green carbon project is the second nature-based solution (NBS) to comply with international carbon neutrality standards such as ISO 14068-1 and be posted on the exchange, the TCX said.

Its first NBS project -- a blue carbon project involving mangroves in Myanmar -- was launched in June.

According to the International Union for Conservation of Nature, NBS are "actions to protect, sustainably manage or restore natural or modified ecosystems that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits."

Green carbon and blue carbon projects are types of NBS. Green carbon refers to carbon stored by terrestrial ecosystems, mainly land-based vegetation such as forests. Blue carbon refers to carbon stored in coastal and marine ecosystems.

The two NBS projects have been established in accordance with relevant regulations from the Ministry of Environment and TCX's operational procedures, and will also be analyzed by researchers at Taiwanese universities, the TCX said.

The TCX was set up in August 2023 and began trading carbon credits in December that year. It is Taiwan's only certified exchange for trading on international voluntary carbon markets.