What is a carbon rights exchange? Will it be like stocks, something everyone can buy and sell? I am an individual. Can I purchase carbon rights through the carbon rights exchange and claim to be carbon neutral?
1. Taiwan’s “Carbon Rights” Exchange, what is the transaction content?
You may have heard that there are carbon trading markets abroad. However, the objects of foreign carbon trading are divided into two types: one is carbon emission quota (Allowance); the other is carbon offset credit (Carbon Offset Credit).
China has not yet implemented total cap control, so the “Carbon Rights Exchange” established on August 7 will be limited to the trading of voluntary reductions, that is, carbon offset credits.
With the trading platform, everyone can easily grasp the supply and demand of carbon rights and have more choices.
2. Can I exchange the trees planted in my home for carbon rights?
How many carbon rights can you get if you buy an electric car and plant as many trees as you want? Can I get carbon rights by planting trees in my home?
The identification of carbon rights has strict standards and scientific basis. Domestically speaking, to obtain carbon rights, one must adopt a methodology approved by the Environmental Protection Agency and be in line with international standards, including measurable, reportable, verifiable (MRV principles) as well as additive, conservative, permanent, and avoidable Damage, avoid double counting. Carbon rights will be obtained only after being checked by the Environmental Protection Agency and third-party verification agencies.
3. What are the business projects of the Carbon Rights Exchange?
The three major business projects of my country’s Carbon Rights Exchange:
1. Domestic carbon rights trading
2. Foreign carbon rights trading
3. Carbon consulting and education promotion
In the initial stage, carbon consulting and education and training services will be carried out first. The most anticipated domestic and international carbon rights trading will not be carried out until the relevant sub-laws and policies of the "Climate Change Response Act" are finalized.
4. The feasibility and impossibility of carbon rights trading in Taiwan
Before purchasing carbon rights, you must first determine your purpose of use. Many units have carbon rights with limited recognition. Some foreign units do not accept carbon rights issued by civil organizations, and certain domestic situations do not accept foreign carbon rights, so be sure to clearly understand the purpose of use before purchasing. Here are a few common reasons:
- Requirement for Environmental Impact Assessment Review: Yes.
Some newly developed industrial zones or science parks will first undergo an environmental impact assessment review (environmental impact assessment) by the Environmental Protection Agency before being established. In order to reduce the impact on the environment, China's "Climate Change Response Law" requires development units to implement carbon offsets-business operators can purchase carbon rights or adopt offset measures approved by the Environmental Protection Agency (such as replacing old cars and motorcycles with electric ones). car).
It must be noted that the source of carbon rights offset by environmental impact assessment must come from domestic carbon reduction credits.
- Offsetting the upcoming domestic carbon fee: yet to be determined.
my country’s climate law allows “carbon rights to be exchanged for carbon fees,” but the detailed specifications cannot be confirmed until the carbon fee sub-law is introduced.
However, market price factors must also be taken into consideration. If the carbon fee is cheaper than purchasing carbon rights, then people may not want to purchase carbon rights to offset the carbon fee.
(One thing to note is that the results of carbon reduction cannot be counted twice. For example, after a company reduces its carbon fee due to carbon reduction, it can no longer apply for carbon rights.)
- European Carbon Border Adjustment Mechanism (CBAM): No.
If the carbon content of imported products regulated by the EU exceeds the EU specification, the importer must purchase a CBAM certificate, or the importer has paid a carbon price in a non-EU country and must also pay CBAM based on the EU carbon price difference. According to EU regulations, CBAM does not accept credits issued by international civil organizations to offset carbon fees. In other words, domestic carbon rights exchanges currently only serve as a voluntary reduction market, and purchased carbon rights cannot be used to offset CBAM.
However, Taiwan’s upcoming “carbon fee” has been confirmed to be able to offset CBAM.
- Corporate carbon neutrality declaration: Yes.
When companies issue carbon neutrality declarations, government agencies currently do not have clear regulations and supervisory units, and acceptable carbon rights are also determined by the companies themselves.
However, there are many sources of foreign carbon offset credits, and some have already erupted into controversy. It’s important to note that buying defective carbon credits can actually damage your company’s reputation. For carbon rights on the carbon rights exchange, they are relatively secure because they are certified by the Environmental Protection Agency.
- Supply chain requirements or carbon reduction commitments from international organizations: Not necessarily.
There are currently no clear specifications for each company's supply chain or international carbon reduction commitments and carbon neutrality declarations, and the acceptable categories of carbon rights are also determined by the companies themselves.
5. Can individuals or groups purchase carbon rights to declare carbon neutrality?
Before you want to declare carbon neutrality, you must first know how much carbon you use (carbon inventory), and then purchase enough carbon rights to neutralize it. There is currently no way to conduct carbon inventory of personal behaviors. Without knowing how much carbon is emitted, it is difficult to declare carbon neutrality.
The most important thing to reduce carbon emissions is to start with yourself. Only consumption that cannot be reduced can be offset by carbon rights. If we only rely on purchasing carbon rights to declare carbon neutrality, we will lose the meaning of carbon neutrality.
Information source: Environmental Information Center (https://e-info.org.tw/node/237345)
