In 2026, the extreme heat continued to hit the planet, and recorded historically high temperatures in many regions. These temperatures aggravated the droughts and the forest firesin addition to putting pressure on the water resources. All this affected the public healthto energy supply and economic activity. Taiwan has also faced climate risks such as extreme heat, heavy rain and typhoons, and it is clear that climate change has become a shared challenge. Although Taiwan is not part of the United Nations Framework Convention on Climate Change (UNFCCC)continues to work on climate governance in the spirit of the Paris Agreement. After having presented its nationally determined contributions by 2035Taiwan is now translating its emissions reduction goals into action and collaborating with international partners to develop practical solutions.
He article 4 of the Paris Agreement urges parties to progressively strengthen their mitigation plans and fulfill their nationally determined contributions. He reinforced transparency framework established in Article 13 requires consistent and quantifiable information to evaluate progress on climate actions. In line with these international standards, Taiwan this year formally approved the third phase of its action programs to reduce greenhouse gases for the period 2026-2030. These programs cover the energy, manufacturing, residential and commercial building, transportation, agriculture and environment sectors. He national greenhouse gas inventory latest from Taiwan shows that in 2024 net emissions of these gases were located a 6.59% below 2005 levelsrecording a decline for the third consecutive year.
During that same period, the real GDP continued to grow, while the intensity of carbon dioxide emissions decreased by 48.59%. This indicates a gradual decoupling between economic growth and carbon emissions. With regard to transparency, Taiwan regularly publishes relevant documents (including Nationally Determined Contributions, Biennial Transparency Reports, and National Inventory Reports) in line with international practices.
To speed up the ecological industrial transitionTaiwan this year began applying a carbon tax. In its first year of application, this tax has to date generated income worth 4.97 billion new Taiwan dollars (NT$). Through various instruments such as subsidies, financing and risk sharing, Taiwan’s regulatory framework will facilitate the entry of more private equity to support the transition to zero net emissions.
In the next stage, a system called Taiwan Emissions Trading System (TW-ETS). This mechanism will allow progress towards a diversified carbon pricing framework in which the carbon tax and the emissions trading system operate in parallel. Recently, the UK has recognized Taiwan’s carbon tax as a valid carbon pricing system within its Carbon Border Adjustment Mechanism. This is an important step in linking the Taiwanese carbon pricing framework with international systems.
The industrial transition towards net zero emissions It must go further, also covering the way in which resources are used. This year, Taiwan has refocused management efforts toward a governance that spans the entire product lifecycle. The government has identified eight key areas of the circular economy: food, plastics, textiles, health, construction, electronics, inorganic resources and circular industries.
Currently, there are 69 listed companies in the circular economy sectorwhich together generate more than one trillion New Taiwan Dollars (NT$) in annual revenue.
This shows that the circular economy is progressively taking shape as a large-scale green industry. Through legislation, industrial collaboration and digital innovation, Taiwan aims to accelerate the circulation of resources and to the goal of «zero waste».
Faced with the increasing risk posed by heat, Taiwan has this year used a scenario of extreme heat of 40°C to boost inter-ministerial adaptation strategiesreinforcing preparation and coordination in areas such as public health, energy, transportation, occupational safety and support for vulnerable groups. Likewise, at the initiative of the president Lai Ching-teTaiwan has created the National Committee for the Promotion of Urban Forests to boost the National Tree Cover Program. This initiative converts the urban forestry into an element of the national resilience infrastructure.
The preamble of Paris Agreement underlines the need to take into account the imperatives of a just transition for the workforceas well as the creation of decent and quality work. Taiwan has converted the principle of “leave no one behind” at a central axis of its transition to net zero emissions, and has established a governance foundation that addresses the just transition through Climate Change Response Law.
To materialize a just transition While implementing carbon reduction policies, Taiwan is carrying out stakeholder consultations this year in six key sectors: energy, manufacturing, residential and commercial buildings, transportation, agriculture and environment.
Taiwan will then synthesize sectoral policies in order to develop a national action plan for a just transitionestablishing a national regulatory framework for such transition and ensuring that the social participation continues to be a vital component in the planning and execution of health policies. net zero emissions.