This project therefore analyzes the fundamental elements needed for proper market construction based on multiple case studies captured in the Emission Trading in Practice, published by the International Carbon Action Partnership (ICAP). This project then addresses the progress and improvement that Taiwan would need to acknowledge and further provides recommendations on the essential actions and direction for the construction of a well-functioning market mechanism. This project addresses the expertise needed for the future emission control policy and the credit allocation and auction in emission trading mechanism. Therefore, information on the models and parameters of the carbon pricing calculation in foreign countries are collected as a reference to the construction of a carbon pricing stimulation tool under the local framework. This part of the project is divided into six parts: 1. Compilation of foreign carbon pricing models and case studies 2. Analysis on the crucial elements for each carbon pricing stimulation design. 3. The choices of parameters in each model and the reasons of such choices. 4. Analysis on the important elements in the carbon pricing stimulation design under the Management Act. 5. Set the parameters for carbon pricing model according to the local design of emission trading mechanism. 6. Provision of recommendation on the appropriate carbon pricing model. Apart from carbon market and the carbon tax, other methods such as Renewable Energy Certificate and Energy Saving Certificate are all considered as a part of the market mechanism to promote emission reduction. This project thus compiles the foreign case studies on the implementation of Renewable Energy Certificate and Energy Saving Certificate. Through the existing experience of foreign countries, the project discusses the competitive and corporative possibilities between carbon market and other induce mechanisms available. Furthermore, related policies on viable implementation methods are offered to be compatible with the current policy framework. This project actively arranges the bilateral corporation between Taiwan and Germany by inviting the representatives from the Deutsche Emissionshandelsstelle (DEHSt) to Taiwan. This meeting welcomes the German delegates to share its experiences on the construction of European Union Emission Trading Mechanism and the implementation of such mechanism in Germany. The meeting also builds upon the past communication made in the team’s visit to Germany in May 2017 and the 2017 Carbon Market Capacity Building Meeting conducted in October 2017, and arranges the scope of cooperation in the next three years of time between Taiwan and Germany. In addition, this project successfully assists Taiwan in maintaining a close communication with crucial international organizations through the attendance of COP23 and the 2017 Asia-Pacific Carbon Forum. This not only provides our country with a list of experienced experts for future capacity building purposes, but also sets an important foundation for the country’s future planning in establishing international connectivity.

Carbon Market, Paris Agreement, Carbon pricing, Capacity Building