In 2026, extreme heat swept across the globe, with historically high temperatures occurring in many regions. Western Europe experienced its hottest June on record, intensifying drought and wildfires, and putting pressure on water resources. This disrupted public health, energy supplies, and economic activity. Taiwan also 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. Taiwan 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 through various government agencies.
Taiwan's latest national greenhouse gas inventory shows that net greenhouse gas emissions in 2024 were 6.59% 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 emission density fell 48.59%. This indicates a gradual decoupling of economic growth from carbon emissions. Taiwan follows recommended frameworks set by the Intergovernmental Panel on Climate Change and the Paris Agreement, regularly publishing related documents.
To accelerate the green industrial transition, Taiwan began collecting carbon fees this year as part of its effort to make carbon pricing a key policy instrument for decarbonization. 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 generated NT$4.97 billion in revenue.
The regulations governing subsidies for greenhouse gas reduction technologies and climate change adaptation were promulgated to support reduction technologies and adaptation measures. Through diverse instruments such as subsidies, financing, and risk sharing, Taiwan's framework will introduce more private capital in support of the net-zero transition. A cap-and-trade system, called the Taiwan Emissions Trading System (TW-ETS), will be progressively developed.
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, and there are 69 publicly listed companies in the circular economy sector, generating over NT$1 trillion in total annual revenue.
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, reducing its reliance on virgin resources and lowering its carbon burdens. This will enhance resource security, supply chain resilience, and green competitiveness.
Key points
- Taiwan submitted its 2035 nationally determined contributions in 2025.
- Taiwan began collecting carbon fees this year to make carbon pricing a key policy instrument for decarbonization.
- Taiwan aims to accelerate resource circulation and zero waste through legislation, industrial collaboration, and digital innovation.
