Taiwan To Begin Domestic Sales Of Carbon Credits On TCX

Taiwan To Being Domestic Sales Of Carbon Credits On TCX - Carbon Herald

Taiwan is getting ready to launch domestic carbon credits trading on the Taiwan Carbon Solution Exchange (TCX) by late September or early October, according to the Ministry of Environment (MOENV).

This announcement follows the release of official regulations for trading and transferring domestic carbon credits generated by voluntary emission reduction projects. These regulations are set to take effect on August 15th.

MOENV‘s Deputy Director-General Huang Wei-ming explained the delay, citing the need to finalize administrative procedures and ensure compatibility between the government’s emission reduction system and the TCX‘s trading platform.

Relevant: Switzerland And Thailand Made The First Ever Carbon Credits Deal Under Article 6.2

The new regulations establish the TCX as the sole authorized platform for auctioning and trading domestic carbon credits. 

To guarantee secure and transparent transactions, private brokerage and consignment of these credits will be prohibited.

Additionally, MOENV will implement a coding system for carbon credit information, including project type and monitoring duration. 

This ensures the validity of credits for trading, auctions, and offsetting purposes, while also preventing misleading environmental claims.

Who Can Participate?

Only entities whose emission reduction projects have been government-approved will be eligible to sell or auction domestic carbon credits.

Buyers will be limited to those authorized to offset their emissions under the Climate Change Response Act’s Article 26. 

This includes major emitters exceeding 25,000 metric tons of carbon dioxide equivalent annually, who will face carbon fees later in 2024.

Relevant: KiudaEX Carbon Credit Exchange To Be Launched In Sri Lanka

To maintain market stability, buyers won’t be allowed to resell their acquired domestic carbon credits on the TCX.

While the carbon fee rate was originally planned for finalization in the first quarter, there have been significant delays. 

The fourth meeting of the committee reviewing the fee rate is scheduled for later this week.

In May, the MOENV proposed a preferential system for carbon fee payers. Those utilizing domestic emission reduction credits would receive a 1.2 ratio (meaning 1 metric ton of credit could offset 1.2 metric tons of emissions), with a maximum of 10% of their chargeable emissions being offsettable.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
Translate »
Total
0
Share