Taiwan has taken a key step toward establishing its own emissions trading system (TW ETS) by signing a memorandum of understanding (MOU) with the European Energy Exchange (EEX).
The agreement, finalized on June 27 in Leipzig, Germany, was announced on June 30 by the Taiwan Carbon Solution Exchange (TCX).
This strategic partnership aims to bring Taiwan in line with global carbon trading practices by leveraging the European Union’s well-established emissions trading system.
The EU ETS, launched in 2005, is the world’s largest carbon market, and the EEX, which serves as its primary operational platform, will now assist Taiwan in setting up its own system.
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“Through this strategic partnership, TCX aims to leverage EEX’s best practices in market operation to support the establishment of TW ETS,” said Joshua Tien, CEO of TCX.
Peter Reitz, CEO of EEX, emphasized the importance of emissions trading systems in supporting global decarbonization and the energy transition, noting that EEX is committed to sharing its expertise and advancing carbon pricing worldwide.
The signing ceremony drew top environmental and diplomatic figures, including Taiwan’s Representative to Germany, Shieh Jhy-wey, and Minister of the Environment, Peng Chi-ming.
Their presence emphasized the MOU’s significance to Taiwan’s climate goals.
By partnering with EEX, Taiwan aims to create a transparent and efficient carbon market that could eventually link with other international systems.
The EU has already connected its carbon market with Switzerland and is exploring integration with the UK, setting a precedent for broader regional cooperation.
Taiwan’s move aligns with broader East Asian efforts toward market-based climate solutions, with Japan and South Korea also pursuing emissions trading mechanisms.
Read more: Taiwan Carbon Exchange Has Started Selling Its First Carbon Credits
