Berlin: The Taiwan Carbon Solution Exchange (TCX) signed a memorandum of understanding (MOU) with the European Energy Exchange (EEX) in Germany on Friday. The EEX is the main trading platform of the European Union Emission Trading Scheme (EU ETS).

According to Focus Taiwan, the MOU aims to assist TCX in developing a transparent and reliable emission trading system (ETS) market in Taiwan. This development will leverage the European Union's successful operational experience, as stated by TCX.

During the signing ceremony, EEX CEO Peter Reitz emphasized the significance of global carbon emission trading mechanisms in achieving decarbonization and energy transition. He expressed EEX's willingness to share its expertise in system design and operations to support the establishment of new mechanisms and to advance global carbon pricing and trading markets.

The TCX characterized the agreement as a significant milestone in Taiwan's progress toward establishing its own cap-and-trade emissions trading scheme. TCX CEO Joshua Tien highlighted that since its inception in 2005, the EU ETS has become a leading carbon pricing mechanism, with EEX playing a crucial role in carbon emission trading operations.

Tien mentioned that TCX is planning to pilot Taiwan's ETS mechanism next year, in accordance with the Ministry of Environment's policy roadmap. The MOU will allow Taiwan to benefit from the EEX's extensive experience in market operations to facilitate this development.

According to TCX, the EU ETS has already established a link with Switzerland's ETS and is planning further connections with the UK ETS as part of a gradual expansion toward a global carbon trading system. Countries near Taiwan, such as Japan and South Korea, have already implemented or are promoting their own ETS mechanisms. This MOU is expected to facilitate Taiwan's future integration with other carbon markets.