39 national and 23 subnational jurisdictions have put a price on carbon through ETSs and taxes. These carbon pricing instruments account for some 7 GtCO2e, about 12 percent of the annual global GHG emissions. With The Greenhouse Gas Reduction and Management Act having come into force since July 1 2015, “Cap and Trade” system is expected to be implemented in the near future in Taiwan. Since the launch of the market is a core mechanism of the Emissions Trading Scheme (ETS) for achieving cost effectiveness, the main purpose of this research is to design a set of policy tools to initiate the launch of carbon market and its supporting measures. The accomplished tasks in this study include: (1)Developing credit managing mechanism prior to the work of launching carbon market, including: researching mechanisms of international credit registries, proposing Regulations for GHG Emissions Registry and Account Management (Draft), analyzing designs of international emission trading schemes, proposing Regulations for GHG Emissions Trading Management Methods (Draft), and comprehending supply and demand in the country; (2)On the aspect of proposing viable strategies of reducing industrial emissions, acquiring developing methods of the most viable technologies and performance standard or benchmark of international electricity sectors; In accordance with GHG emission distribution of Taiwan’s industrial sectors, proposing feasible options of concluding performance standard; (3)On the aspect of assessing economic impact of localizing reduction management strategy, completing the establishment of feasible methods of economic impact assessment, and simulating the assessment in accordance with mandatory reduction managing strategy.

Carbon Trading, Carbon Credit, Performance Standard