MOENV Hosts 2025 Asia Carbon Pricing Forum to Collaborate with Global Partners on Green Transition Pathways

To strengthen international dialogue on carbon pricing policies and identify the optimal pathways for Taiwan's medium- to long-term strategy, the Ministry of Environment (MOENV) today (23rd) convened the 2025 Asia Carbon Pricing Forum. Partnering with the German Emissions Trading Authority (DEHSt) as its knowledge partner, the forum brought together carbon market experts from Europe and neighboring Asian countries, alongside representatives from Taiwan's industry, government, academia, and research sectors.

Participants exchanged insights on the evolving global carbon trading landscape and its associated challenges, with the goal of drawing on international experience to support Taiwan in designing policy measures that balance greenhouse gas reduction with sustainable economic development.

Deepening Taiwan–Germany Cooperation to Build a Sustainable Future

The MOENV noted that Taiwan's carbon fee mechanism officially took effect in 2025, marking a key milestone as the nation enters an era of carbon pricing. The scheme targets manufacturers and power generators with annual emissions exceeding 25,000 metric tons, who will be required to pay fees in May next year based on their 2025 greenhouse gas emissions. Designed with emission reduction as its core objective, the system also provides preferential rates for companies that submit approved voluntary mitigation plans aligned with designated reduction targets. At this critical juncture in advancing Taiwan's carbon pricing framework, the MOENV emphasized the importance of drawing on international best practices and policy exchanges to collectively address the twin challenges of decarbonization and sustainable economic growth.

Karsten Tietz, Director General of the German Institute Taipei, and Dr. Jürgen Landgrebe, Senior Advisor to MOENV, also delivered remarks at the forum. Since 2018, Taiwan and Germany have been working closely on capacity building for emissions trading. In June this year, Minister Peng led a delegation of the Green Growth Alliance to Berlin for on-site study and exchanges, further strengthening bilateral collaboration. As a concrete outcome of these efforts, the Taiwan Carbon Exchange (TCX) signed a Memorandum of Understanding (MoU) with the European Energy Exchange (EEX) on June 27, leveraging EEX's extensive expertise to lay a solid foundation for the development of Taiwan's carbon market.

Dual-Track Focus: Exploring Carbon Pricing Pathways

The morning session centered on sharing best practices in European carbon pricing systems. Prof. Dr. Daniel Klingenfeld, Head of Division V3 at the DEHSt, opened with insights into Europe and Germany's extensive experience in emissions trading, offering an in-depth analysis of policy design and market governance. Alistair Ritchie, Director of the Asia Society Policy Institute, followed with an assessment of the current status and future development of carbon markets across Asia, providing valuable perspectives for regional policy dialogue. Representing Taiwan, Director-General Lin-Yi Tsai of the Climate Change Administration, Ministry of Environment, presented the framework of Taiwan's carbon fee mechanism and outlined the country's long-term carbon pricing roadmap, underscoring Taiwan's policy vision and strategic approach to climate governance.

Learning from Asia: Diverse Approaches to Carbon Reduction

The afternoon session turned the spotlight on Asia's diverse carbon reduction practices. Sawako Tada, Managing Director of Japan's GX Acceleration Agency, presented the institutional framework and implementation strategy of the GX-ETS, highlighting its phased approach of "voluntary to mandatory," where companies initially participate in voluntary trading under the GX Alliance before transitioning into a compulsory market. The Korean representative shared updates on Korea's Emissions trading scheme (ETS), noting its broad coverage and the recent inclusion of financial institutions and other third parties to enhance market liquidity. From Indonesia, the representative outlined the country's "sector-first" approach, beginning with coal-fired power plants—responsible for the largest share of national emissions—before gradually expanding to other industries. These presentations offered participants valuable insights into the varied designs and operational experiences of carbon markets across the Asia-Pacific region.

Building Consensus and Shaping the Future of ETS

The forum concluded with an open dialogue among domestic and international experts and all participants, centering on core issues such as carbon market development strategies, models for regional cooperation, and emerging policy challenges. The MOENV emphasized that the exchange of diverse international experiences will provide a solid foundation for Taiwan's gradual establishment of an ETS, while accelerating alignment with global carbon pricing trends. Looking ahead, the MOENV pledged to continue drawing on international best practices to refine Taiwan's carbon pricing framework, with the ultimate goal of achieving both effective emissions reduction and sustainable economic growth.