Case Study: Taiwan Trading Carbon across Jurisdictions

The document examines how Taiwan can engage with international carbon markets despite not being a party to the UNFCCC or the Kyoto Protocol. It analyzes formal eligibility requirements and material 'market readiness' conditions across various systems, including the EU ETS, RGGI, WCI, and others. The study suggests that while formal treaty-based access is restricted, Taiwan can utilize indirect participation, bilateral cooperation, and the development of a robust domestic cap-and-trade system with absolute targets to facilitate future linkage.

• Taiwan's unique political status prevents it from formally joining the UNFCCC or the Kyoto Protocol, which restricts its direct participation in flexible mechanisms like Joint Implementation (JI), the Clean Development Mechanism (CDM), and International Emissions Trading (IET).
• Taiwan has developed significant 'market readiness' through the creation of a national GHG registration platform, the establishment of the Office of Greenhouse Gas Reduction Management at the EPA, and the adoption of international standards for measurement, reporting, and verification (MRV).
• The European Union Emissions Trading System (EU ETS) requires linked systems to be mandatory and have absolute emissions caps; Taiwan's lack of such a mandatory target and its unrecognized statehood may pose obstacles to formal linkage under Directive 2003/87/EC.
• The Western Climate Initiative (WCI) presents a more open structure for Taiwan because its design refers to 'Non-WCI programs' rather than requiring statehood or sovereignty for linkage.
• The Regional Greenhouse Gas Initiative (RGGI) allows for unilateral links to mandatory governmental carbon constraining programs outside the US, but the term 'governmental' may be a political barrier for Taiwan.
• Japan's Bilateral Offset Crediting Mechanism (BOCM) offers a potential pathway for Taiwan to lower emissions through the supply of Japanese low-carbon technologies, although the resulting credits would flow back to Japan rather than Taiwan.
• Taiwan's draft Greenhouse Gas Reduction Act aims to create a three-stage framework: first, mandatory registration and reporting; second, emission permits and performance standards; and third, a national emissions target and a domestic emissions trading system.

APA

Mehling, M., Mielke, S., Fan, C.-T., Chien, H.-C., & Tsai, W.-C. (2013). Case Study: Taiwan Trading Carbon across Jurisdictions. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2016/01/cs-case-study-taiwan-2-2013-final-format.pdf

Chicago

Mehling, Michael, Sebastian Mielke, Chien-Te Fan, Hui-Chen, Chien, and Wei-Chen Tsai. Case Study: Taiwan Trading Carbon across Jurisdictions. Climate Strategies, 2013. https://climatestrategies.org/wp-content/uploads/2016/01/cs-case-study-taiwan-2-2013-final-format.pdf.

Wikipedia

{{cite report |last1=Mehling |first1=Michael |last2=Mielke |first2=Sebastian |last3=Fan |first3=Chien-Te |last4=Chien |first4=Hui-Chen, |last5=Tsai |first5=Wei-Chen |title=Case Study: Taiwan Trading Carbon across Jurisdictions |publisher=Climate Strategies |date=January 2013 |url=https://climatestrategies.org/wp-content/uploads/2016/01/cs-case-study-taiwan-2-2013-final-format.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mehling2013case, author = {Mehling, Michael and Mielke, Sebastian and Fan, Chien-Te and Chien, Hui-Chen, and Tsai, Wei-Chen}, title = {{Case Study: Taiwan Trading Carbon across Jurisdictions}}, institution = {Climate Strategies}, year = {2013}, month = jan, url = {https://climatestrategies.org/wp-content/uploads/2016/01/cs-case-study-taiwan-2-2013-final-format.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }