EPA Announces Amendment of the “Greenhouse Gas Reduction and Management Act” to the “Climate Change Response Act”

Climate change is a common challenge for the world. Taiwan enacted the “Greenhouse Gas Reduction and Management Act” (hereinafter referred to as the Act) in 2015 and became one of the few countries in the world to incorporate national carbon reduction targets into legislation. As global climate change becomes increasingly severe, the EPA proposed the draft amendment for the “Greenhouse Gas Reduction and Management Act” and plans to change the title of the legislation to “Climate Change Response Act”. The period for public comment is 60 days and the EPA welcomes opinions from all sectors.

The EPA stated that due to the extensive scope of climate change response work, the EPA has communicated with all stakeholders before filing the proposed amendment of the “Greenhouse Gas Reduction and Management Act”. It has proposed 4 major amendments including enhanced administrative controls, a complete range of economic incentives, specified the jurisdiction and responsibilities of government agencies, and additional adjustments. The EPA also organized 17 seminars with major industries such as steel, semiconductors, cement, paper and glass, oil refinery, artificial fiber, petrochemicals, basic chemicals, and electricity, and other private organizations and government agencies to gather their opinions for the draft amendment. The EPA enhanced greenhouse gas reduction measures and mechanisms for adapting to climate change and changed the title of the legislation to “Climate Change Response Act”. The key points of the amendment are described as follows:

Incorporation of the net-zero emissions by 2050 target into legislation
The Act currently specifies that the long-term national GHG emission reduction goal shall be to reduce GHG emissions to no more than 50% of 2005 GHG emission by 2050. The amendment specifies a target of net-zero GHG emissions by 2050 to demonstrate the Taiwan’s resolve for reducing emissions. To attain this goal, all governments must work with citizens, businesses, and associations to jointly promote GHG reduction, develop negative emissions technologies, and foster international cooperation.

Strengthen climate governance with higher government authority
Greenhouse gas reduction and climate change adaptation involve the jurisdiction and responsibilities of different government agencies. The amendment specifies that the National Council for Sustainable Development of the Executive Yuan will coordinate, assign tasks, or integrate basic national strategies for responding to climate change and decisions made by different central government agencies in their operations. In addition, the central competent authority is responsible for integrating the action plans of different government agencies to formulate the national reduction plan. Local governments must set up a Climate Change Response Implementation Council to coordinate and integrate climate change response affairs.

Dedicated chapter on climate change adaptation
The dedicated chapter on climate change adaptation includes 3 key points — basic capacity building, scientific research forecasts and connections, and establishment of the implementation framework. The first key task is to enhance comprehensive national fundamental capacity in response to climate change. The government must promote adaptation capacity building and incorporate the responsibilities of citizens, businesses, and groups. The second key task is to strengthen scientific research forecasts and connections. The central science and technology competent authority must compile relevant science, possible scenarios, and risk information on climate change, and regularly publish science reports on climate change. Government authorities must conduct climate change risk assessments to provide a basis for the adaptation. The third key task is the establishment of the implementation framework. The central competent authority of each industry shall establish the “Adaptation Action Plan in the Field of Authority”. The central competent authority shall integrate the action plans to formulate the “National Climate Change Adaptation Action Plan”, and the local governments shall establish their respective “Climate Change Adaptation Implementation Plan” to facilitate local adaptation strategies. They shall also compile reports of the results each year to ensure information transparency and public participation.

Enhancing control of emissions and incentives to facilitate reduction
Increasing energy efficiency is a key strategy for achieving net-zero emissions. The amendment will include control mechanisms for emissions in manufacturing, transportation, and construction sectors to increase energy efficiency and to lower emission intensity. The amendment also requires the adoption of best available technology for new emission sources and offsets of increased emissions to lower the environmental impact from increased emissions. It also enhances voluntary reduction plans proposed by businesses or government authorities to provide incentives in the form of reduction credit and reduce GHG emissions with a dual-track approach.

Imposing carbon levy for designated uses
A carbon pricing system can use economic incentives to reduce emissions and it is recognized internationally as an important strategy for reducing carbon emissions. To build a robust carbon pricing system, the amendment sets carbon levies for domestic emission sources, and uses the levies exclusively for GHG reduction tasks, development of low-carbon and negative emissions technologies and industries, and subsidies and awards for investments in GHG reduction technologies to promote GHG reduction and the development of a low-carbon economy. In response to the Carbon Border Adjustment Mechanism enacted by foreign countries to prevent the risk of carbon leakage, the amendment included a provision that allows the central competent authority to set criteria for carbon content calculation and identification for specific products in the future, and impose carbon levies on imported products with high carbon contents.

In addition, the amendment enhanced carbon footprint management mechanisms and product labeling. The measures extend producer responsibilities, provide low-carbon choices for consumers, and encourage manufacturers to produce low-carbon products. The amendment also includes carbon capture, recycling, and sequestration into the legislation to facilitate the development of negative emissions technologies. The draft amendment also strengthens information transparency and civic engagement, requires all levels of government to establish GHG reduction and climate change adaptation plans and programs, and publish their results.

Sources: Environmental Protection Adminstration