Nikkei Asia Cites DSET Researcher’s Insights on Taiwan’s Climate Policy

On October 16, “Nikkei Asia” published an exclusive interview with Taiwan’s Minister of Environment, Dr. Perng Ching-ming, discussing Taiwan’s climate policies. The report also cited Dr. Lu Tsai-ying, a research fellow at DSET and the director of climate resilience and sustainability research program. Dr. Lu emphasized, “The key to Taiwan’s secondary energy transition lies in financial support. With COP29 approaching, the Taiwanese government should prioritize turning the carbon fees to be introduced in 2026 into a funding source for driving the energy transition.”

Earlier this October, after over a year of discussions, Taiwan finalized its carbon fee rate at TWD 300 (approximately USD 9.31). In the interview, Minister Perng reflected on the policies being planned under President Lai Ching-te’s administration, highlighting:

1. Taiwan’s 2050 net-zero emissions goal, enshrined in the Climate Change Response Act last year.
2. Strengthening the country’s mid-term reduction targets by revising its Nationally Determined Contributions (NDC). The 2030 emissions reduction target has been raised from 24% to 25–28%, alongside establishing a reduction pathway from 2030 to 2035.
3. By 2025, nearly 500 Taiwanese companies will begin calculating their emissions, with carbon fees to be collected starting in 2026.
4. The introduction of a Taiwanese version of the EU’s Carbon Border Adjustment Mechanism (CBAM).
5. Emphasizing a secondary energy transition, requiring deeper national dialogue. This involves reducing emissions not only in the manufacturing sector but also in transportation, residential, commercial, healthcare, and educational institutions. Additionally, achieving renewable energy installation goals will necessitate community engagement and ensuring local communities benefit from the energy transition.

Nikkei Asia cited Dr. Lu, described as a climate policy expert from the “Asia’s top technology think tank, DSET.” Dr. Lu reiterated that financial backing is pivotal for Taiwan’s “second” energy transition. By 2030, Taiwan aims for 24.7% of its electricity to come from renewable sources—about 55% from solar, 35% from wind, and 10% from other sources—describing this as a “monumental challenge.”

According to Taiwan Power Company’s data, Taiwan is currently lagging behind in its renewable energy goals. Last year, green energy accounted for only about 10% of total electricity generation. Addressing this, Dr. Lu remarked, “As renewable energy expands, the substantial financial burden from feed-in tariffs will further strain the already fragile finances of Taiwan Power Corporation.” She concluded, “With COP29 approaching, the most critical discussion is how regulations on carbon fees collected from corporations can be transformed into a funding mechanism for driving the energy transition.”