Taiwan exchange set to kick off trading for first batch carbon credits


The Taiwan Carbon Solution Exchange (TCX) will start trading carbon credits on Dec. 22, offering international credits from seven countries in Asia, Africa, and South America at a price of US$5 to US$15 per metric ton of CO2 equivalent. 

The initial trading is open for purchase by local entities that have obtained the Gold Standard (GS), according to TCX, which estimates about 15-20 listed companies to complete trading when the exchange opens.

The exchange platform will open from 9 a.m. to 3.30 p.m. for trading and purchases are not allowed to resell the credits on the exchange.

TCX will start trading carbon credits on Dec. 22. (Photo: Executive Yuan)

According to the Ministry of Economic Affairs (MOEA), “carbon credits” equal to the “right to emit carbon,” which is calculated by one metric ton of carbon dioxide equivalent per unit. 

Industries can acquire carbon credits to comply with the government's carbon regulations or to meet the carbon neutral requirements of international supply chains and initiatives.

Regarding the Ministry of Environment’s plan to introduce carbon fees from 2025, TCX said that the credits can neither offset domestic carbon taxes nor reduce the carbon tax in the future under the EU’s Carbon Border Adjustment Mechanism (CBAM), but they can help companies achieve their carbon neutrality target.

Under Taiwan’s Climate Change Response Act, for international credits to offset carbon tax requires the government’s making of carbon fee-related regulations.

Four major public financial institutions under the Ministry of Finance including Mega Financial Holding, Taiwan Cooperative Financial Holding, First Financial Holding, and Hua Nan Financial Holdings are planning to purchase the first batch of carbon credits to meet their net-zero goals, aiming to offset emissions from their electricity consumption and business trips. Meanwhile, China Steel and Taipower are reported to follow suit, CNA said.

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