Referring to Daily Sabah’s news article published on Nov. 1 titled “Türkiye nears completion of industry road maps for EU’s carbon tax,” quoting from Trade Minister Ömer Bolat’s announcement that Türkiye was “systematically and resolutely” implementing the Green Deal plan and within the framework of Türkiye’s efforts under the Carbon Border Adjustment Mechanism (CBAM), Türkiye is actively engaged in informational activities to fulfill the reporting obligations to assist companies in meeting their requirements.
As United Nations Secretary-General Antonio Guterres stated, we have transitioned from an era of global warming to one of global boiling. To combat climate change and achieve zero carbon emissions by 2050, efforts are being made worldwide to reduce carbon emissions, particularly in industries with high emissions like petrochemicals, cement, fertilizer and steel production. Many countries have been implementing carbon tax systems to lower these emissions, including the European Union, which has close trade ties with both Türkiye and Taiwan. As we know from the above-mentioned article, the EU’s CBAM already began its trial phase in October this year, which would bring extra challenges to the industries from its importing countries.
As an export-oriented economy, Taiwan’s business operations are heavily influenced by international conditions and regulations. Yet, under the pressure of a deteriorating climate, we can’t have the cake and eat it, too. Faced with the choices between profit and environmental protection, both Taiwan and Türkiye have opted for protecting our environment and reducing carbon emission volume.
Paving the way for net-zero
Taiwan amended its environmental laws this year, making it the 18th country globally to enshrine the “2050 net-zero emissions” goal into law. Nevertheless, even in doing so, we haven’t forgotten to assist and guide businesses in transitioning, minimizing the losses stemming from taxation resulting from carbon reduction efforts. Taiwan has established an inter-ministerial coordination mechanism to help companies understand and reduce the carbon content of their products, promoted a carbon pricing system under the global trends toward CBAM and green supply chain requirements, as well as put forth the Green Finance Action Plan, which supports the low-carbon transition of industry by steering capital investment to green or sustainable businesses. It has also put in great efforts to improve the environmental, social and corporate governance of companies and strengthen sustainable development.
In response to CBAM, Türkiye is also preparing for and introducing its Emissions Trading System in 2024. Taiwan likewise will begin implementing a carbon tax mechanism next year. In order to assist industries in meeting international supply chain requirements and carbon reduction targets and accelerate the transition to net zero emissions, Taiwan established the Taiwan Carbon Solution Exchange (TCX) this August, which will also promote research and development in low-carbon technology and cultivate related talent, fostering a virtuous cycle within the overall green economy.
Green development
Türkiye has already raised its aim to bring its greenhouse gas emissions to 41% below business-as-usual levels by 2030 from the original target of 21% last November, and low-carbon technology will play an essential role in it to reach the goal. On the issue of combating climate change and carbon zero-emission, Taiwan and Türkiye are on the same path.
As a responsible member of the international community, Taiwan also continues to pragmatically seek opportunities to contribute by leveraging its advantages and strengths in green technology development and accordingly to apply its expertise to programs such as disaster relief, disaster prevention, the environment, medicine, public and green energy. We look forward to working with all stakeholders under the U.N. Framework Convention on Climate Change. To take collective action with all and jointly overcome the climate crisis, Taiwan and Türkiye are important parts of the solution and partners!
