The content of this project includes four parts. There are three issues in the first part. First, we reviewed the current status of international carbon markets and found out the possible policy insights from these review. Second, how to evaluate the GHGs reduction was investigated. The evaluation methodology was then constructed based on the index of Social Cost of Carbon to help completing policy assessment in Taiwan. Finally, since the price signals are crucial for policy making, we estimate the possible carbon price of Taiwan off-set crediting market on the basis of demand and supply data. Carbon leakage occurs when direct and indirect costs deriving from an asymmetrical climate policy have a substantial impact on competitiveness, leading to industrial production and new investments moving outside a regulated region together with the associated greenhouse gas emissions. This working definition of carbon leakage is based on three core concepts: (1) Asymmetrical climate policy, (2) Substantial impact on competitiveness, (3) Relocation of greenhouse gas emissions: the phenomenon of companies moving their production and/or redirecting their investments to other jurisdictions where emissions costs are lower, thereby increasing emissions. A number of other jurisdictions such as EU, South Korea, and US- State of California are adopting measures to define the level of carbon leakage. Most of the jurisdictions currently uses carbon cost (emissions intensity or carbon intensity) and trade intensity to determine the degree which a sector is energy-intensive and trade-exposed. This project refer to California methodology to define the level of carbon leakage risk of Taiwan sectors. In the second part, we investigated the investment analysis of micro-scale project taking into the procedure of the international Clean Development Mechanism (CDM) system and the Japan J-Credit mechanism together in order to increase the robustness of domestic investment analysis evaluation principles. We also updated the domestic industry benchmark value from the data of listed companies with a total of 18 industries as the reference for the review of carbon offset additionality. In addition, the research team assisted a total of 14 cases by reviewing the investment additionality analysis (9 cases for the first round review, 5 cases for the second round review) In the third part, assessing the possible economic impacts of adoption of available emission standard for commercial sector, especially for service industry is the major task in the third part. An assessment process could capture the interaction between commercial sector and the rest of the economy was adopted to assess the impact of implement of carbon emission standard. The several of simulations on the basis of different scenarios are provided as outcomes and the policy applications are suggested based on the assessment results. The fourth part, to assist with analysis and review the individual case of GHGs emissions evaluation and case tracking, this project has examined 53 cases of environmental development activities and 3 tracking cases have been checked with report for each individual case. At the end, we will hold 10 hours training programs and 6 professional seminars to focus on GHGs management issues related to our project.

Early Action Project and Offset Project, Carbon Pricing, Carbon Leakage, Additionality of investment, Reduction costs for GHGs, Economic Impact Analysis, Environmental impact assessment