Responding to NAMAs and preparing for INDCs/NDCs: The role of emissions trading in greenhouse gas reduction for Taiwan’s electricity sector

Abstract

Purpose

In this paper, the international progress of Nationally Appropriate Mitigation Actions (NAMAs), Intended Nationally Determined Contributions (INDCs), and Nationally Determined Contributions (NDCs) under the United Nations Framework Convention on Climate Change are reviewed. The content of Taiwan’s NAMAs and INDCs are also investigated, especially with reference to actions for the electricity sector. To better understand the greenhouse gas (GHG) reduction contribution from the electricity sector, this paper aims to examine challenges and solutions for implementing a carbon trading mechanism in Taiwan’s monopolistic electricity market under the newly passed Greenhouse Gases Emissions Reduction and Management Act (GHG ERMA).

Design/methodology/approach

Carbon reduction strategies for the electricity sector are discussed by examining and explaining Taiwan’s official documents and the law of GHG ERMA.

Findings

This study finds that market mechanisms should be utilized to allocate appropriate costs and incentives for GHG reductions to transform Taiwan into a low-carbon society.

Originality/value

This study identifies strategies for the electricity sector to reduce GHG emissions, especially the operation of a carbon-trading scheme under a non-liberalized electricity market.

Citation

Lin, J.-C., Chen, W.-M. and Chen, D.-J. (2017), "Responding to NAMAs and preparing for INDCs/NDCs: The role of emissions trading in greenhouse gas reduction for Taiwan’s electricity sector", International Journal of Climate Change Strategies and Management, Vol. 9 No. 1, pp. 2-20. https://doi.org/10.1108/IJCCSM-12-2015-0174