TAIPEI (Taiwan News) — The Ministry of the Environment and 17 Taiwanese companies formed a “Green Alliance” on Thursday to promote carbon emission reduction.

The companies are major greenhouse gas emitters and submitted voluntary reduction plans. According to the ministry's news release, the alliance will work to promote the fair implementation of a domestic carbon fee, foster international cooperation on carbon reduction, strengthen the green industrial supply chain, and organize forums and exchange activities.

The alliance held its first meeting on Thursday. During the meeting, the Central Weather Administration shared insights on Japan’s Green Transformation policy, which offers incentives to encourage major carbon emitters to increase their use of green energy. 

The administration said Japan’s policy requires companies to establish carbon reduction targets and disclose their reduction methods and progress. Companies are also expected to achieve carbon neutrality across their supply chains and label the carbon footprint on their products. The administration added that this policy could serve as a model for Taiwan.

Environmental Minister Peng Chi-meng (彭啟明) said the ministry will provide sufficient incentives to encourage companies to cut carbon emissions. It also plans to test a cap-and-trade system, where companies can buy or sell emission allowances. He added that this system, combined with the current carbon fee, will help create a more effective and transparent way to charge for carbon emissions.

The ministry said that it will invite Japanese carbon reduction experts to Taiwan in May to hold a forum, where they will share insights on Japan's Green Transformation policy, including its carbon trading system. In June, members of Green Alliance will visit European Union member states to learn about their carbon emission control initiatives.

Peng added that starting this year, publicly listed companies will be required to submit sustainability reports, outlining their environmental, social, and governance plans and performance. Beginning next year, the ministry will impose a carbon fee on power, gas supply, and manufacturing sectors with annual greenhouse gas emissions exceeding 25,000 tonnes.