Learning from Others: Exploring Global Carbon Reduction Strategies from EU ETS to CDP

Currently, global carbon emissions trading markets primarily involve countries such as the EU, the UK, Australia, the US, and Japan. Among these, the world's first cap-and-trade carbon market is the European Union Emission Trading System (EU ETS). This system was established in 2005 with the entry into force of the Kyoto Protocol and remains the largest carbon trading market globally. The system covers 30 countries, including 27 EU member states, as well as Iceland, Liechtenstein, and Norway. Meanwhile, the Carbon Disclosure Project (CDP) actively encourages businesses and governments worldwide to disclose their environmental impact, using detailed questionnaires to assess their climate change response strategies and specific environmental protection actions, thereby promoting the public disclosure of relevant climate risks and opportunities.

By participating in international systems and standards like the EU ETS and CDP, businesses and governments can make active contributions to mitigating climate change on a global scale. These mechanisms establish a framework that continuously promotes innovative solutions, allowing all parties to continuously strive to address climate challenges. Proactively understanding and adhering to these carbon market regulations and environmental information disclosure requirements is not only a part of corporate social responsibility but also an indispensable step in ensuring long-term business success and sustainable development.

Taiwan's Plan Drawing on European Experience

In early 2023, Taiwan revised and implemented the "Climate Change Response Act," establishing a legal target of net-zero emissions by 2050. In response to the EU's Carbon Border Adjustment Mechanism (CBAM), the first wave proposes to implement carbon fees for approximately 500 major carbon emitters with annual emissions exceeding 25,000 metric tons between 2024 and 2025. Taiwan can gain valuable experience in carbon emission management and climate action from the European Emission Trading System (EU ETS) and the standards and operations of CDP. With increasing global pressure to reduce carbon emissions, the Taiwanese government can consider the following strategies to strengthen its climate action (including enhancing climate change adaptation capabilities, strengthening resilience and reducing vulnerability, implementing phased greenhouse gas control targets, improving climate change sustainable education and public literacy, etc.):

Establish a carbon emissions trading system: Drawing on the experience of the EU ETS, Taiwan can design a carbon trading mechanism that aligns with its local economic and industrial characteristics. This includes determining reasonable carbon emission caps, allocation methods, and gradually introducing more industries to participate in the carbon market. Carbon trading can not only facilitate carbon price formation but also incentivize businesses to invest in low-carbon technologies and solutions.

Strengthen corporate environmental information disclosure: Following CDP's disclosure standards, Taiwan can promote broader corporate environmental transparency, requiring major emitting enterprises to regularly report their greenhouse gas emission data, environmental impact, and related risk management strategies. This helps build corporate environmental responsibility awareness and increases public and investor confidence in corporate climate actions.

Enhance the consistency and predictability of environmental policies: To attract long-term low-carbon investment, the government needs to provide a stable and predictable policy environment. This includes long-term planning for carbon reduction targets, clear policy pathways, and support policies for innovative technologies and renewable energy.

International cooperation and knowledge exchange: Taiwan should strengthen cooperation with other countries and international organizations, share best practices, and participate in international carbon markets and other multilateral climate initiatives. Through these international platforms, Taiwan can not only enhance its own climate strategy but also promote carbon reduction globally.

As global climate agreements and emission reduction targets advance, the international community is collectively facing the challenge of climate change. In this process, countries not only need to formulate and implement internal emission reduction strategies but also must cooperate and engage in dialogue on the international stage to ensure the overall consistency and effectiveness of global emission reduction efforts. By referencing and drawing on successful international experiences, such as the European Emission Trading System, Taiwan can not only enhance its own capacity to respond to climate change but also secure a place in international climate policy, increasing its global influence.

Taiwan Moving Towards a Low-Carbon Future

The green transition is not an overnight accomplishment. It requires government leadership, corporate innovation, public support, and international cooperation. Actively promoting domestic and international policy coordination and technological innovation will be key to Taiwan's successful achievement of carbon neutrality goals. Furthermore, popularizing environmental education and raising public awareness of the importance of climate action are necessary steps to transition society as a whole toward sustainable development.

In the face of climate change, no country can stand alone. The global climate crisis demands that all countries take action, and these actions require scientific guidance and international cooperation to ensure their effectiveness and fairness. By integrating international experience with local innovation, Taiwan can not only enhance its strategies for responding to climate change but also contribute to global emission reduction efforts. From policy formulation to public participation, from corporate responsibility to international cooperation, every step is a crucial one towards a low-carbon future. Taiwan's actions and strategies will promote broader climate action and environmental protection globally, jointly creating a sustainable and livable future.