From commitments to action: Taiwan and the world creating climate solutions together

In 2026, extreme heat continued to sweep across the globe, with historically high temperatures occurring in many regions. Western Europe experienced its hottest June on record. These temperatures intensified drought and wildfires and put pressure on water resources. This disrupted public health, energy supplies and economic activity. Taiwan has likewise faced climate risks, including extreme heat, heavy rainfall and typhoons. Climate change has become a shared challenge with profound implications for social stability, industrial development and national resilience.

Against this backdrop, global climate governance is moving beyond the formulation of targets and commitments toward concrete implementation. At this year’s COP31 meeting, participants will emphasize the principles of dialogue, consensus and action while working to turn commitments into concrete, trackable results. Even though Taiwan is not a party to the United Nations Framework Convention on Climate Change, it continues to work on climate governance in the spirit of the Paris Agreement. Having submitted its 2035 nationally determined contributions in 2025, Taiwan is now translating its emissions-reduction targets into action by many government agencies to achieve a green industrial transition, resource circulation, climate adaptation and a just transition. It is also collaborating with international partners to develop practical solutions.

Aligning with international norms while achieving concrete emissions reductions through transparent governance

Article 4 of the Paris Agreement calls on parties to progressively strengthen mitigation plans and reach nationally determined contributions. The enhanced transparency framework laid out in Article 13 calls for consistent, trackable information to assess progress on climate actions. Aligning with these international norms, Taiwan this year formally approved its third-phase greenhouse gas reduction action programs for six sectors, covering the years 2026-2030. These programs address energy, manufacturing, residential and commercial buildings, transportation, agriculture and the environment, incorporating 20 flagship mitigation action plans, annual emissions targets and 63 performance indicators. They further embed national mitigation goals into sectoral policies and allow for annual monitoring and evaluations. Taiwan’s latest national greenhouse gas inventory also shows that net greenhouse gas emissions in 2024 were 6.59 percent below 2005 levels and demonstrated a decline for the third consecutive year. Over the same period, real GDP continued to grow, even as carbon dioxide emissions intensity fell 48.59 percent. This indicates a gradual decoupling of economic growth from carbon emissions.

As for transparency, Taiwan follows recommended frameworks set by the Intergovernmental Panel on Climate Change and the Paris Agreement. It regularly publishes related documents, including nationally determined contributions, biennial transparency reports and national inventory reports, matching international practice. Through clear mitigation pathways, sectoral action and transparent information, Taiwan will continue to assess its progress and turn climate commitments into measurable, trackable outcomes.

Pursuing net-zero and zero waste to enhance industrial competitiveness during the green transition

To accelerate the green industrial transition, Taiwan began collecting carbon fees this year, part of its effort to make carbon pricing a key policy instrument for the decarbonization of industry. The collection system is linked to voluntary reduction plans and preferential rates that encourage companies to incorporate emissions reductions into their investment and operational decisions. In the first year of collection, the carbon fee has thus far generated NT$4.97 billion in revenue, which goes to the Greenhouse Gas Management Fund, a dedicated fund for greenhouse gas reduction and climate change adaptation efforts. The fund offers loan credit guarantees and interest subsidies to optimize operations. Meanwhile, the Regulations Governing Subsidies for Greenhouse Gas Reduction Technologies and Climate Change Adaptation were promulgated to support reduction technologies and adaptation measures. Through such diverse instruments as subsidies, financing and risk sharing, Taiwan’s framework will introduce more private capital in support of the net-zero transition.

During the next stage, a cap-and-trade system will be progressively developed. This will be called the Taiwan Emissions Trading System (TW-ETS) and will move toward a diversified carbon pricing framework in which the carbon fee and the ETS operate in parallel. The United Kingdom recently listed Taiwan’s carbon fee as a qualifying carbon pricing scheme under its Carbon Border Adjustment Mechanism. This will permit eligible Taiwanese products to claim carbon-price deductions in accordance with applicable rules, marking an important step in building links between Taiwan’s carbon pricing framework and international systems.

The industrial net-zero transition must extend beyond energy and carbon management to address the way resources are used. This year, Taiwan completed amendments to the Resource Circulation Promotion Act and the Waste Disposal Act, shifting management efforts from end-of-pipe treatment toward governance across the entire product life cycle. The government has identified eight major aspects of the circular economy: food, plastics, textiles, health, construction, electronics, inorganic resources and circular industries. At present, there are 69 publicly listed companies in the circular economy sector, which generates over NT$1 trillion in total annual revenue. This shows that the circular economy is progressively taking shape as a green industry of scale. Taiwan continues to promote digital product passports, source plastic reduction and reuse. Through legislation, industrial collaboration and digital innovation, Taiwan aims to accelerate resource circulation and zero waste, reduce its reliance on virgin resources and lower its carbon burdens. This will enhance resource security, supply chain resilience and green competitiveness.

Strengthening climate resilience and integrating adaptation into national planning and everyday life

Article 7 of the Paris Agreement sets out a global goal to enhance adaptive capacity, strengthen resilience and reduce vulnerability to climate change. At COP30, participants adopted the Belém Adaptation Indicators to further advance the Global Goal on Adaptation toward measurable and trackable action. Taiwan continues to align with international adaptation efforts by integrating climate risk assessments into national and local governance an