Taiwan Minister Backs Carbon Market for Japan, Korea and Taiwan

(Bloomberg) -- Taiwan, Japan and South Korea could form a single carbon market in the future, Taiwan Minister of the Environment Chi-Ming Peng said in an interview. 

“One carbon market will be the trend,” Peng said in Tokyo on Wednesday. Taiwan is closely following carbon markets in Japan and South Korea and it’s a topic that is frequently discussed, although there are no definitive plans, he said. Peng didn’t provide a timeline. 

Any common carbon market for the countries would need to overcome cross-border policies that have proven challenging in other sectors. 

The island last year finalized a carbon levy that was due to take effect Jan. 1 and covers some of Taiwan’s biggest emitters, including steel and semiconductor manufacturers. The levy will cover about 500 factories that emit more than 25,000 tons a year, with payments due from 2026 onward, the official Central News Agency said in October. 

Taiwan is struggling to lower its carbon footprint and clean up its power generation amid decade-long shift away from nuclear power, triggered by the Fukushima accident in Japan in 2011. The island shut the last of its four nuclear plants last month. 

But public opposition to nuclear power may be easing, according to Peng. “Especially the young generation — they like the nuclear power. They can accept the nuclear power station,” he said. 

Taiwanese lawmakers last month revised a nuclear power bill that effectively opens the door for the restart of the island’s atomic plants, underscoring a wider policy shift as its energy demand grows and geopolitical tensions worsen.

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