The impacts of climate change are becoming more frequent and severe. At the 21st Conference of the Parties (COP21) in December 2015, Paris Agreement was adopted as the first-ever universal, legally binding global climate deal which has set out global emission reduction targets and established a set of binding procedural commitments of the nationally determined contributions of the parties. The Agreement soon entered into force on 4 November 2016. In response to the global trends, Taiwan has been pursuing policies to cut the greenhouse gas emissions for many years. The “Greenhouse Gas Reduction and Management Act” (the Act) were enacted in 2015. To provide financial support to the efforts in combating climate change of both mitigating greenhouse gas emission and adapting impact of climate change, article 19 of the Act authorize the establishment of the Greenhouse Gas Management Fund. The existing efforts coping with climate change among countries focus on the reduction of energy consumption and the raise of energy efficiency with fiscal incentives and environmental fees and taxes. Facing the massive funding needs generated by the implementation of policies regarding climate mitigation and adaptation and related fiscal instruments, international financial mechanisms are designed and deployed with different sources and purposes, forming a new trend in climate finance. Understanding of climate finance has been improved among public and private sectors. However, policy frameworks of governments and financial strategy of banks are still needed in order to catalyze private sector climate finance and investment. This research provides both comprehensive and specific policy and technical advice in accord with national greenhouse gas emission reduction policies by collecting and analyzed the data and information of how the international organizations, other countries and financial institutions develop climate finance, soliciting opinions through consultation meetings with professionals and sharing experiences in participating international affairs of climate finance with private sector to complete Taiwan’s strategic and legal frameworks responding to climate change.

Climate finance, Greenhouse Gas Management Fund、Greenhouse Gas Reduction and Management Act