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

Transcription

1 Vol. 1, October 2013

2 Overview of Taiwan s Greenhouse Gas Reduction Bill (Draft) Overview of Taiwan s GHG Reduction Efforts In order to promote sustainable development in Taiwan and to proactively contribute to the global efforts towards climate change mitigation, the Taiwan Environmental Protection Administration (TEPA) has drafted the Greenhouse Gas Reduction Bill in 2006 to establish a legal framework to manage greenhouse gas (GHG) emissions in Taiwan. The Bill would authorize relevant governmental agencies to establish emissions reduction plans, as well as TEPA to launch a domestic cap-and-trade scheme in the future. The Bill was approved by the Executive Yuan, the executive branch of the R.O.C. Government, in September 2006 and was first submitted to the Legislative Yuan for review the same year; however, the Bill only passed the first reading in The Bill was subsequently resubmitted to the Legislative Yuan for review during its 7 th Term in 2008 and 8 th Term in 2012, passing only the first reading both times. Meanwhile, TEPA also founded the Office of GHG Reduction and Management in January 2008 to further coordinate GHG mitigation strategies among government agencies enhance the effort of local governments on GHG reduction issues, and to enhance publicprivate partnerships. Before the Bill takes effect, TEPA has been actively encouraging voluntary reduction agreements with industries and incentives for early action. TEPA activated the National GHG Registry System on July 1, 2007 to allow organizations and businesses to voluntarily report their emission inventories, using credible, accurate, and consistent GHG reporting standards. The System serves as a transparent platform where registered participants can manage their emissions and the national GHG emission database is hosted. To meet international MRV requirements, TEPA utilized MRV guidelines stipulated for the CDM projects and ISO as its two main references. The design of the National GHG Registry System will also ensure

3 all offset credits generated domestically by early actions will meet proper MRV requirements. In addition to pushing forth the Greenhouse Gas Reduction Bill and launching the National GHG Registry System, TEPA has also supported mitigation efforts through the implementation of environmental impact assessment (EIA). Industries are required to propose reduction targets and commitments as part of the EIA process. To compliment reduction actions necessitated by the EIA, TEPA announced Directions for Promoting Early Action Project and Offset Project in September 2010, which creates an offset credit scheme and stipulates how intended participants are regulated and how offset credits are generated, verified, and issued. Early action projects are designed to help catalyze the transformation into a low-carbon economy. Once the Bill is passed, an emission permit system, inventory verification and reporting, as well as emission performance standards will be in place. Furthermore, when an international climate change agreement is reached, a cap-and-trade scheme would be enforced. As stipulated in the Bill, the timing and stringency of setting a reduction target and launching a cap-and-trade scheme in Taiwan would depend on the progress of international climate negotiations. General Structure of the Bill The 2008 draft version of the GHG Reduction Bill consists of a total of 28 articles, which detail the five chapters of the Bill, as illustrated in Figure 1: general principles of the Bill, governmental and sectoral reduction responsibilities, reduction measures such as GHG performance standards and the cap-and-trade scheme,

4 education and promotion measures related to the Bill, and finally, penalties for non-compliance and implementation of the Bill. While the 2008 draft version of the Bill includes reduction targets, the 2012 draft version submitted to the Legislative Yuan for review does not. In terms of reduction measures and targets, Taiwan currently implements a four-step approach to mitigating GHG emissions, as displayed in Figure 2. Stage I of the four-phase reduction strategy is voluntary participation, where businesses and organizations draw up voluntary reduction agreements or commit to early action projects. Relevant GHG management regulations (see Table 2), which will be further discussed later, have already been passed to help advance voluntary reduction efforts in Taiwan. Stage II, III, and IV of Taiwan s GHG reduction strategy requires the passing of the GHG Reduction Bill. Stage II of the strategy entails mandatory GHG reporting and inventory of designated emitters. Designated emission sources are required to conduct annual emission Source: TEPA Figure 1: General Structure of the GHG Reduction Bill

5 inventory and verification, as well as registering their emissions on the TEPA platform. As the passage of the Bill has encountered interruptions in the legal process, Stage II of the strategy, which is where Taiwan is currently in, is being carried out through Taiwan s existing Air Pollution Control Act, which will be discussed in more details later. During Stage III of the strategy, existing or new emission sources emitting above a certain level must apply for emission permits from TEPA, and monitor, record and report emissions in accordance with the permit conditions. In addition to GHG emission permits, designated emission sources also need to comply with GHG emission performance standards, such as GHG emission per ton of steel production, based on established emission intensity for new and existing emitters, as well as installation under various sectors and products. The standards would be determined by TEPA in consultation with the central industry competent authorities, such as the Bureau of Energy and the Industrial Development Bureau. Domestic offset trading will also commence during Source: TEPA Figure 2: Taiwan s Four-Phase GHG Reduction Strategy

6 Stage III. In the final stage of the four-phase reduction strategy, Taiwan will implement a domestic cap-and-trade scheme, the timing of which depends on the progress of international climate change negotiations, as previously mentioned. Such a conditionality was added to the Bill because it is vital to ensure the design of Taiwan s cap-andtrade scheme will align with the newest international standards and practices; this will enable Taiwan s scheme to link with other cap-and-trade schemes seamlessly in the future. Recent Development Since the GHG Reduction Bill was drafted and first submitted to the Legislative Yuan for review in 2006, the Bill was resubmitted for review after the Legislative Yuan s 7 th and 8 th elections, in 2008 and in 2012, respectively, with each submission only passing the first reading. In addition to the draft version of the Bill approved by the Executive Yuan, two alternative versions of the Bill have since been proposed for consideration. Alternative versions were proposed due to disagreements that arise during the review processes, including the incorporation of a national emission reduction target into the Bill, methods for carbon accounting, and hearing procedures of the Bill. Recent key developments of the Bill in Taiwan s Legislative Yuan are detailed in Table 1. While the GHG Reduction Bill has Table 1: Recent Key Developments of the Greenhouse Gas Reduction Bill (Draft) in Taiwan s Legislative Yuan Date February 2012 April 2012 April 20, 2012 April 17-18, 2013 May 8, 2013 Source: TEPA Recent Key Developments Within the Legislative Yuan Executive Yuan resubmitted the Bill to the 8 th Term of the Legislative Yuan for review The Bill passed first reading, and was passed onto the Social Welfare and Environmental Hygiene Commission for review Legislator Shao-Ping Hsu (KMT) proposes alternative version of the Bill (also known as the Hsu Version ) TEPA Minister Stephen Shu-Hung Shen presented the Bill to the Legislative Yuan; the Legislative Yuan concluded to review the Bill at an alternative date. Legislator Chiu-Chin Tien (DPP) proposes alternative version of the Bill (also known as the Tien Version )

7 encountered bottlenecks in the legislative procedures, TEPA continues to push forth a series of GHG management regulations (as shown in Table 2) concurrently to further Taiwan s reduction efforts, such as establishing the National GHG Registry, early action and offset projects, as well as mandatory GHG emission reporting. In November 2009, TEPA promulgated Operational Principles for GHG Verification Bodies, through which TEPA regulates GHG verification processes and manage related verification agencies in Taiwan. In September 2010, TEPA implemented two GHG management regulations: Management Principles for GHG Emissions Inventory and Reporting and Promotion Principles for Early Action and Offset Projects. The latter regulation is especially important as it not only establishes how businesses and entities in Taiwan could voluntarily obtain domestic carbon credits before the passing of the GHG Reduction Bill, but it also pushes Taiwan to build carbon management capacities. To compliment the early action and offset projects, TEPA also announced the Management Rules of GHG Reduction Credits and Accounts in April 2011 to help better regulate and manage carbon credits generated domestically. To facilitate mandatory GHG emission reporting by major emitters, TEPA designated the six greenhouse gases covered by the Kyoto Protocol as air pollutants in May 2012, and commenced regulating GHG emissions Table 2: GHG Management Regulations Implemented by TEPA Date November 2009 September 2010 September 2010 April 2011 December 2012 Source: TEPA GHG Management Regulations Implemented Operational Principles for GHG Verification Bodies Management Principles for GHG Emissions Inventory and Reporting Promotion Principles for Early Action and Offset Projects Management Rules of GHG Reduction Credits and Accounts Management Regulations Governing Greenhouse Gas Emissions Reporting and announcement of Public and Private Premises Required to Report Greenhouse Gas Emissions

8 under Taiwan s existing Air Pollution Control Act, as summarized previously in Figure 2. Additionally, TEPA also announced Management Regulations Governing Greenhouse Gas Emissions Reporting and Public and Private Premises Required to Report Greenhouse Gas Emissions in December Both pieces of regulation took effect on January 1, 2013, requiring energy-intensive industries to complete reporting and verification of GHG emissions inventory. This not only enables TEPA to push forth the planned Stage II of the GHG Reduction Bill without further delay, but also allows TEPA to better understand the amount of GHG Taiwan emits. The aforementioned GHG management regulations will help Taiwan further develop policy instruments and build capacities on managing emissions verification, inventory and registration, domestic carbon and offset credits, as well as carbon and offset accounts, which are essential to establishing a strong foundation for future GHG reduction endeavors in Taiwan. Bibliography Office of GHG Reduction and Management, Management Record for Greenhouse Gas Reduction ( 溫室氣體減量管理紀實 ), Taiwan Environmental Protection Administration, August Taiwan Environmental Protection Administration, Establishment and Development of the Greenhouse Gas Reduction Bill, January Taiwan Environmental Protection Administration, Towards UNFCCC: Policy and Act,

9 R elated News Title: U.S. and Taiwan Forge Environmental Cooperation Agreements Published Date: 2013/07/18 Source: Taiwan Environmental Protection Administration (EPA) Synopsis: On July 16, 2013, Jacob Chang, Deputy Representative of the Taipei Economic and Cultural Representative Office in the U.S., and Barbara have cooperated on over 190 projects in the past 20 years. The extension signed on this occasion will expire in June 2018, and has officially launched the 10 th Schrage, Managing Director of the Implementation Agreement for the American Institute in Taiwan (AIT), Taiwan-US Environmental Protection signed three cooperation agreements at Cooperation Agreement. The 10 th the AIT Washington Headquarters: Implementation Agreement will address 1. Extension of the Taiwan-US the issues of environmental remediation; Agreement for Technical climate change adaptation; prevention, Cooperation in the Field of Environmental Protection management, and recycling of e-waste; air quality protection; sustainability; 2. Tenth Implementation Agreement environmental law enforcement and for the above agreement. compliance; and environmental 3. Agreement for Technical education. Cooperation in Atmospheric This is also the first time where the Monitoring, Clean Energy, and Environmental Science. A group from the Taiwan EPA, led by Minister Stephen Shu-hung Shen, was also present at the signing. Taiwan EPA has signed a cooperation agreement with the U.S. Department of Energy (DOE). The agreement will enable Taiwan to better understand and access technologies, as well as policy The first bilateral environmental measurement, assessment, and protection cooperation agreement evaluation tools used for greenhouse gas between Taiwan and the U.S. was reduction and building low-carbon signed in 1993; Taiwan and the U.S. communities.

10 The Taiwan EPA and the U.S. DOE will be launching various cooperative initiatives in the future. The signing of the three cooperation agreements signifies a closer, mutually-beneficial working partnership between the two countries in the field of environmental protection. The forms of cooperation will continue to consist of personnel trainings, information exchange, symposiums, and official visits that will focus on issues such as improving air quality, atmospheric monitoring, sustainable development, environmental remediation, and clean energy. Title: Glass Recycling Cuts Carbon Emissions in Taiwan Published Date: 2013/09/03 Source: Taiwan Environmental Protection Administration (EPA) Synopsis: The annual amount of carbon reduced by about 370,000 tons. emissions avoided from recycling glass Since 2011, the EPA has begun containers in Taiwan is about 1,000 surveying the carbon footprints of times the CO 2 Taipei City s Daan Forest different materials, including aluminum, Park could absorb, the EPA stated. paper, Tetra Pak cartons, polypropylene The EPA s research shows that and polyethylene, to understand carbon recycling and reusing a 600ml glass emissions generated from treating waste, container (weighing about 480g) as recycling, and reusing recycled materials. 50% of a new glass bottle emits 0.4kg EPA s research states that producing less carbon than making a new glass containers with recycled materials can bottle from raw materials. In 2012, a cut carbon emissions by 47-85%. total of 220,000 tons of waste glass The EPA thus calls for the public to containers were recycled in Taiwan; if recycle waste containers and purchase they were recycled and made into glass products made with recycled materials to bottles, carbon emissions could be help reduce greenhouse gas emissions.

11 Title: UK and Taiwan Share Experience on Low Carbon Cities Published Date: 2013/09/30 Source: The UK Government Synopsis: The British Trade & Cultural by design, and energy reduction Office (BTCO) and the Taiwan EPA cohosted the Taiwan-UK Low Carbon strategies for sustainable buildings. Taiwan has announced its pilot low and Sustainable City Forum on carbon projects program, with a total September 30. Nine UK companies estimated investment value of from the low carbon and sustainable approximately NT$56.4 billion, as part infrastructure sectors shared their of its objective to establish a low carbon experience and expertise in the seminar. In addition, Mr. Baron Frankal, New economy. The EPA plans to allocate a budget of about NT$ 28.2 billion to Economy Director of Economic develop four pilot low carbon cities by Strategy Association of Greater The four cities are New Taipei Manchester Authorities, also shared his experience of how local public sector bodies invested in green growth and how they worked with private and public sector partners to understand, influence, and innovate to create a better economy. The group of UK businesses discussed how to develop low carbon cities, including sustainable transport solutions, a sustainable design approach for commercial architecture, how to City, Yilan County, Taichung City and Tainan City. The ultimate goal is to form four low carbon living zones by 2020 and 16 low carbon cities by In addition to the four cities, Penghu and Kinmen islands are included in the low carbon project. Kinmen s projects have recently been approved by the central authorities with a total budget of approximately NT$4.7 billion to implement low carbon initiatives for the next five years. deliver radical low-energy performance

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