The Challenges of Emissions Trading within the Context of Taiwan's Greenhouse Gases Reduction Policies

摘要

Strategically, Taiwan has made up its mind to adopt emissions trading as its main policy tool to reduce GHGs emissions. However, there are too many uncertainties to expect when the emissions trading will launch and what exactly the system will include. It is quite unusual that Taiwan is willing to voluntarily accept obligations on climate change issues, but will not be able to do so under any multilateral agreements. That is probably the reason why Taiwan is uncertain about emissions trading and is waiting for more international signals of post-Kyoto regulations on the GHGs reduction. It would be an advantage for Taiwan to implement emissions trading without any international reduction obligations. Taiwan can control its own GHG reduction timescale to link emissions trading with the transition to a low carbon society. National reduction targets needs to be set clearly, either by top-down or bottom-up procedures. Then, the timelines and the amount of GHG emissions reductions required to implement lower carbon technologies and emissions trading could be set. Moreover, the EPA could eliminate the uncertainties embedded in the GGRA accordingly and reduce the political resistance significantly. The article concludes with suggestions for the structuring Taiwan's emissions trading as follows: (1) the CAT system could follow the stage one (collecting emissions information) immediately; (2) CAT should be implemented in stages in accordance with the schedule of implementing lower carbon technologies, as it would be better to build capacity first to ensure the smooth transition to a lower carbon society; (3) mutual recognition to link with foreign trading systems is needed, and linking with other trading systems could be Taiwan's long term strategy, but probably not immediately after the implementation of CAT; and (4) a carbon tax regime should be compatible with the GHG emissions trading system, and the schedule needs to be planned carefully to avoid serious impacts on consumers as well as exports.