Environmental Protection Administration, R.O.C. (Taiwan) Report on Greenhouse Gas Reduction Policy Implementation in Taiwan. Vol.

Transcription

1 Vol. 9, September 2016

2 Review of Working Standard (Draft) for Greenhouse Gas Periodic Regulatory Goals and Regulatory Approaches. Background According to the Greenhouse Gas Reduction and Management Act (the Act), the periodic regulatory goal is defined as a goal of greenhouse gases (GHG) emissions reduction over a certain period of time based on the national GHG reduction action plan. Specifically, as stated in the Article 11 of the Act, regulatory goals will be set in stages on a five-year basis. The central competent authority shall invite scholars, experts, and nongovernmental organizations, in conjunction with the central industry competent authorities, to form an advisory committee (the Committee) to set the regulations with regards to the goals and associated regulatory approaches. Furthermore, the regulatory goal for each stage shall be set by the central competent authority, in consultation with the central industry competent authorities, based on the aforementioned approaches. Lastly, it shall be submitted to the Executive Yuan for approval after public hearings are held. The Greenhouse Gas Periodic Regulatory Goal Advisory Committee. 1. Establishment of the Committee To comply with the Article 11 of the Act, the Environmental Protection Administration Taiwan (EPAT) has set Direction for The Establishment of The Greenhouse Gas Periodic Regulatory Goal Advisory Committee (The Direction) on 28 th January 2016 in order to identify the tasks of the Committee, the composition and the responsibilities of its members, the process of the meetings, and the operational approaches (as shown in Figure 1). The Committee was officially formed on 24 th March 2016, composed of the authority representatives, academic experts, civil society representatives, assigned or referred by the relevant ministries.

3 Source: EPAT Figure 1: Establishment of the Committee 2. Task of the Committee The task of the Committee is to consult for the revision of the Working Standard for Greenhouse Gas Periodic Regulatory Goals and Regulatory Approaches (The Standard). 3. Composition of the Committee The Committee is composed of 27 members, including 1 convener, held by the minister of the EPAT, 1 vice convener, held by the deputy minister of the EPAT, 7 representatives of the relevant ministries, assigned by the EPAT, the Ministry of the Interior, the Ministry of Economic Affairs, the Ministry of Transportation, Council of Agriculture and National Development Council, Executive Yuan, and the remaining 18 member positions, held by the experts, scholars, representatives of civil societies, who have practical experiences or specialization in GHG reduction and management, referred by the relevant ministries. The organizational structure of the Committee is shown in Figure Operation of the Committee The Committee has held three council meetings to draft the Standard on 4 th April, 29 th April, and 18 th July 2016.

4 Source: EPAT Figure 2: The Structure of the Committee Key Elements of the Standard (Draft). As stated in the articles 9 and 15 of the Act, in order to implement the nation s GHG reduction policy, the central competent authority shall develop a National Climate Action Guideline and GHG Reduction Action Plan (the Action Plan). The central industry competent authorities shall determine GHG Emissions Control Action Programs for the sectors under its supervision on the basis of the Action Plan. Special municipality, county and city competent authorities shall develop GHG Control Implementation Plans. The relationship between the aforementioned plans on every level with the periodic regulatory goal is illustrated in Figure 3. Source: EPAT Figure 3:The Relationship Between the Plans on Every Level with the Periodic Regulatory Goal

5 1. The Legislative Process of Establishing of the Goals Pursuant to the current planning of the Standard (Draft), the establishment of the regulatory goal shall be in accordance with the considerations disclosed in the Act. The central competent authority, in consultation with the central industry competent authorities, shall set up the periodic regulatory goals on a national level as well as on sectoral level. During the process of setting the goals, the projection of national GHG emission trends and scenario analysis, the estimation of GHG reduction contribution and the scenario analysis of every sector s GHG emission, the plan of intermediate-term targets, and the impact assessment on every aspect, including the economy, energy, the environment, and the society shall be considered. It shall be submitted to the Executive Yuan for approval after public hearings are held (As shown in Figure 4). Source: EPAT Figure 4: The Legislative Process to Establish of the Goals 2. Adjustment Mechanism Not only implementation approaches and but the adjustment mechanism are determined in the Standard (Draft). Through the implementation of GHG

6 Reduction Action Plan and the GHG Emission Control Action Programs, along with the assessing indicators, GHG regulatory sectoral goals, the GHG emissions statistical data, and the review of the execution, the modified plan shall be proposed if the goal is not reached (As shown in Figure 5). Source: EPAT Figure 5: Structure of the Standard What s Next? The legislative process of the Standard long-term GHG reduction target. and the periodic regulatory goals is shown in Figure 6. After the Committee Currently, The draft of the Working Standard for Greenhouse Gas Periodic has proposed the final draft, the draft Regulatory Goals and Regulatory will be announced and the public Approaches has been proposed and hearings will be held. Subsequently, the announced by the EPAT on 30 th Aug central competent authority, in There is a public hearing conjunction with the central industry scheduledtobeheldintaipeion19 th competent authorities, will set and September After the fourth release the Standard. It is planned to establish the first-stage regulatory goal meeting of the Committee, which is planned to take place in October, the by the end of 2016, in order to draft will be submitted to the Executive gradually fulfill the national Yuan for approval.

7 Source: EPAT Figure 6: The Legislative Process of the Standard and Periodic Regulatory Goals Related News Title: Lin Vows greener Taiwan at 1st meeting of energy and carbon office. Published Date: 2016/08/18 Source: Taiwan Today Synopsis: Taiwan will achieve greater energy efficiency and greenhouse gas reductions while regularly reviewing progress on reaching targets set out under the Paris Agreement, Premier Lin Chuan said Aug. 16 at the first committee meeting of the Energy and Carbon Emission Reductions Office under the Executive Yuan. As a member of the international community and an advanced economy, Taiwan is obliged to tackle global warming and climate change, Lin said Establishment of this office is significant at a time when these issues are the primary concern of every nation. According to Lin, the office has three initial goals: boosting solar power generation, lifting wind power generation and industry-related investment, and transforming Shalun Village of southern Taiwan s Tainan City into a center for green energy R&D.

8 Under the first, the office will assist the Ministry of Economic Affairs in implementing Sept. 1 a two-year project aimed at increasing solar power installed capacity to 1.44 gigawatts in two years time. The latest MOEA statistics reveal that Taiwan had installed capacity of 832 megawatts in The second will see the office help the MOEA draft a four-year plan aimed at boosting wind power and related economic activity. Set for review and approval by the Executive Yuan in September, the plan seeks to lift offshore wind power installed capacity to 520 MW and attract private investment of NT$93.6 billion (US$3 billion). Under the third, the office will cooperate with the Ministry of Science and Technology in finalizing a proposal for Shalun Green Science City. It is expected that the initiative will see SGSC emerge as a national energy decision-making center coordinating academic, private and public sector efforts in pursuit of securing a sustainable energy future for Taiwan. According to the agreement reached at the Conference of the Parties to the U.N. Framework Convention on Climate Change, or COP21, in December 2015, signatories agreed a long-term goal of keeping the increase in global average temperature to well below 2 C above pre-industrial levels and to limit the increase to 1.5 C. The government is committed to capping the carbon emissions of Taiwan s five major economic sectors agriculture, commercial, energy, industrial, residential, transportation at million tons this year. Cutting annual output to the average of 2012 to 2014 levels is in line with the goals laid out in Taiwan s Greenhouse Gas Reduction and Management Act of July It also follows the roadmap to achieving the Intended Nationally Determined Contributions, under which greenhouse gassesaretodropto214milliontonsby This is 20 percent lower than the 2005 level, and will bring the national total in 2050 to half that of (WF-E)

9 Title:Taipower tops carbon list Published Date: 2016/08/26 Source: Taipei Times Taiwan Power Co (Taipower) was the nation s largest carbon emitter in 2014, producing more than 37 percent of industrial carbon emissions, with Formosa Petrochemical Corp and China Steel Corp coming in second and third respectively, Environmental Protection Administration (EPA) data showed. Taipower generated million tonnes of carbon dioxide equivalent (CDE) in 2014, accounting for percent of total industrial carbon emissions, the data showed. Formosa Petrochemical and China Steel produced million tonnes and million tonnes of CDE, accounting for percent and 8.56 percent of total industrial emissions respectively, the EPA data showed. The other high-level industrial emitters include: Mailiao Power Corp (5.24 percent), Dragon Steel Corp (4.31 percent), Heping Power Corp (3.49 percent), state-run oil refiner CPC Corp (3.4 percent), Formosa Chemicals and Fibre Corp (2.97 percent), Taiwan Cement Corp (2.25 percent) and Formosa Plastics Corp (1.83 percent), the data showed. Factoring in emissions contributed by subsidiary companies, the Formosa Plastics Group, including Mailiao Power, accounted for percent of industrial carbon emissions, while China Steel, parent company of Dragon Steel, contributed percent. Following the passage of the Greenhouse Gas Reduction and Management Act ( 溫室氣體減量及管理法 )injulylastyear, the EPA earlier this month published the emissions data of the first group of industries to be subject to the act, including power, steelmaking, cement, semiconductor, liquid-crystal display and oil refining industries, and businesses that emit more than 25,000 tonnes of CDE every year. More than 200 companies are regulated under the act, accounting for 88.9 percent of the nation s total greenhouse gas emissions, the EPA said.

10 The total carbon emissions of the regulated industries was million tonnes of CDE. Taipower s Taichung Power Plant alone contributed 17.5 percent to industrial carbon emissions. Other individual contributions include Taipower s Hsinda Plant in Kaohsiung (8.84 percent), China Steel s complex in Kaohsiung (8.56 percent), Formosa s Mailiao Plant No. 1 (7.43 percent), Formosa s Mailiao cogeneration plant (5.24 percent), Dragon Steel s complex in Taichung (4.31 percent), Taipower s Datan Power Plant in Taoyuan (4.07 percent), Heping Power Plant in Hualien (3.49 percent), Formosa s Mailiao Plant No. 3 (3.45 percent) and Formosa s Mailiao Plant No. 2 (2.27 percent). Taipower said its high emissions level was a consequence of power generation, but it would improve energy efficiency and increase the use of natural gas and renewable sources. The EPA said it is drafting measures to incentivize industries to improve efficiency and reduce emissions in preparation for a carbon cap-and-trade system. Title:Low-carbon energy shift must attain equilibrium Published Date: 2016/08/14 Source: Taipei Times The Ministry of Economic Affairs has held three public hearings on amendments to the Electricity Act ( 電 業法 ). The Cabinet aims to submit a draft to the legislature for review before the legislative session begins next month. Under the proposal, the electricity sector would undergo a major transition from a state-run system to a marketdriven pricing scheme. The government is making an effort to break the nation s electricity monopoly and welcome private participants to the market. Looking at electricity reform worldwide, a sound institutional design is critical to ensuring a transition to a low-carbon electricity supply while maintaining reasonable electricity prices and adequate energy security.

11 Over the past two decades, the world s largest developing countries, such as Brazil, India, Mexico, Argentina and China, have also initiated power sector reforms and articulated reform strategies referencing some advanced jurisdictions, such as California, England and the EU. From the beginning of its reform process, the EU decided to move toward a low-carbon electricity supply, with an emphasis on increasing the contribution of renewable energy sources, the introduction of a cap on carbon emissions and the establishment of the EU Emissions Trading Scheme. From this, the key components of a successful low-carbon electricity supply transition can be distilled. First, privatization of state-run electricity monopolies; second, vertical separation of potentially competitive elements, such as generation, marketing and retail supply; third, horizontal integration of transmission facilities and network operations; fourth, competitive procurement processes for low-carbon generation, with reasonable exposure to wholesale price variability; fifth, appropriate pricing of environmental externalities; sixth, development of demand participation in wholesale market prices; seventh, cost reflective access terms for renewables; and eighth, well-established transition mechanisms. While the experiences in implementing reform vary by jurisdiction within the EU, overall progress has been remarkable. The EU model demonstrates that energy and environmental policies can be inextricably linked. According to Taiwan s intended nationally determined contribution (INDC), the nation accounted for approximately 0.55 percent of total global greenhouse gas emissions in 2012 and about 0.8 percent of total global carbon emissions. The report also said that the energy and manufacturing industries make up the highest proportion (about percent) of Taiwan s total greenhouse gas emissions. However, the current draft mainly focuses on legal separation of electricity markets and the restructuring of staterun Taiwan Power Co. It has not clearly integrated this liberalizing process with the national emission reduction target, utility rate design and other important social and technological issues, such as adequate supply of low-cost electricity

12 to poorer households and long-term investment in energy innovation. Article 3 of the Basic Environment Act ( 環境基本法 ) and Article 5 of Greenhouse Gas Reduction and Management Act ( 溫室氣體減量及管理法 ) state that the government s energy policies place balanced emphasis on environmental protection, economic development and social justice. Under this integrated approach, the draft might explicitly include low-carbon targets or environmental considerations and enhance the institutional connections with the INDC, Renewable Energy Development Act ( 再生能源發展條例 ) and Greenhouse Gas Reduction and Management Act.

13 Publisher: Environmental Science Technology Consultants Corporation Address: 8F, No. 280, Sec. 4, Zhongxiao E. Road Taipei City 10694, Taiwan R.O.C.