Taiwan has officially entered the world of carbon pricing with the official launch of the Taiwan Carbon Solution Exchange (TCX).
The nation’s carbon exchange also marked its first day with an inaugural set of international carbon credit trades.
The initial trades of international carbon credits include transactions between seven countries across South America, Asia, and Africa, whereas project developers come from an even wider range of geographical locations, including countries like Switzerland, Singapore and the UK.
Project types span from renewable energy sources (i.e., wind and solar), to biogas power plants, clean water sources, and more.
The launch of the new Taiwan carbon exchange will allow companies in the country to pursue their climate goals and reach emissions reduction targets.
Furthermore, the same companies will have the unique opportunity to shift from buyers to sellers, thus challenging the traditional buyer-centric model.
Tien Chien-Chung, General Manager of TCX, spoke to the differences in demand for carbon credits depending on the different companies and their varied emissions reductions objectives.
Another thing Tien pointed out was the significant lack of understanding of carbon credits among corporations and the inevitable need for Taiwan’s industries to tap into international carbon markets in order to mitigate the island nation’s high carbon intensity.