A "very low" performer | Taiwan Climate & Energy Weekly Briefing 11/22
Taiwan's climate action ranks 59th out of 67
This year’s Climate Change Performance Index, an independent monitoring tool for tracking climate mitigation performance, ranked Taiwan (or “Chinese Taipei” 🙄) 59th out of 67 countries, making it a “very low” performer.
Taiwan received the worst rating - “very low” - in the GHG Emissions and Energy Use categories, and a “low” rating for Renewable Energy and Climate Policy. This year’s rank is one spot higher than last year, but only due to the US dropping significantly due to Trump’s rollback of climate policies.
Where is Taiwan going wrong?
The report’s major criticisms are:
Emissions reductions are far off track: 2023 emissions were only 4.6% below 2005 levels
The carbon fee design has major loopholes
LNG expansion undermines climate goals, locking in carbon emissions
Lack of a coal phase out law, no clear strategy for reducing fossil fuels, fossil fuel subsidies remain in place
Slow and inconsistent renewables implementation
Slow implementation of transport electrification and underdeveloped public transport
Since the phaseout of nuclear power earlier this year, Taiwan has bucked regional trends with an increase in the amount of electricity generated by fossil fuels - 85.5% in the first nine months of 2025, up from 83% during the same period last year. This has been driven by a record gas burn to offset both nuclear phaseout and a decline in coal-fired generation. Asia’s average is around 62%, and the global average is 57%.
What should Taiwan do next?
The report’s recommendations focus on reducing Taiwan’s dependency on fossil fuels:
Establish a legally binding framework for NDC1 implementation while substantially increasing interim reduction targets
Adopting a clear coal phase-out date
Halting LNG expansion
Removing fossil fuel subsidies, and redirecting funds to renewable energy, grid updates, and efficiency
Set binding targets for afforestation and soil carbon storage, securing indigenous participation in land-use decisions, and ensuring financing for ecosystem restoration.
“Controversial” calculations?
The Climate Change Administration of Taiwan’s Ministry of Environment disputes the rankings, calling the index’s per capita emissions methodology “controversial.” The Ministry argues that Taiwan’s overall emissions are declining, as shown by the University of Exeter’s 2025 Global Carbon Budget report which estimated that Taiwan’s carbon emissions fell 2.1% in 2024.
The Emissions Database for Global Atmospheric Research, run by the European Commission’s Joint Research Centre, found Taiwan’s emissions had dropped 9.6% in 2024 compared to Taiwan’s 2005 baseline.
CCPI says it uses GHG emissions per capita (dividing overall emissions by the country’s population) to account for differences in population and allow for a more just view on emissions.
Calculating on a per capita basis puts Taiwan, with its shrinking population, at a disadvantage. While its overall emissions may be declining, so is the population - Taiwan continues to have the lowest fertility rate in the world, with this October marking the 22nd consecutive month of population decline.
Looking at the combination of increasing energy demands for AI (both for data center operation domestically and increased manufacturing of AI chips for export), growth in gas-fired electricity generation and a stagnating renewables rollout, I’m not confident Taiwan’s current trajectory will achieve the emissions reductions needed to meet its net-zero goals. I really hope to be proved wrong!
In other news…
Energy
US think tank the Foundation for Defense of Democracies (FDD) released the results of a tabletop exercise which tested Taiwan’s resilience against a Chinese coercion campaign targeting energy systems. Responding to the report, a Taipei Times editorial argues that energy infrastructure investment should be treated as a matter of national security.
Former Intel CEO Pat Gelsinger said that Taiwan’s strained energy supply justifies moving semiconductor production to the U.S.
The semiconductor industry saw a significant surge in electricity consumption in October (13.87%), the largest single month increase in three and a half years. This rise is in tandem with growing export orders linked to increasing AI demand.
Chairman of Foxconn, a major Taiwanese electronics manufacturer, says he has sensed some slight shifts in the government’s nuclear power policy, as a result of AI industry growth.
The European Chamber of Commerce Taiwan’s 2026 Position Papers called on the government to boost energy security and resilience by:
Creating a Ministry of Energy
Getting offshore wind energy back on track through the smooth implementation of round 3.3
Improved permitting requirements and procedures for geothermal and onshore wind turbine upgrades
Expanding grid and energy storage capacity
Realistic localisation policies
A clear development roadmap for floating offshore wind
Support for EVs and alternative fuels
Loopholes in the new solar EIA legislation (which I discussed in detail last week) need to be fixed, while the chairman of the Taiwan Association of Green Energy Transition argues for reforms to the EIA process to secure Taiwan’s supply of green energy.
GE Vernova signed an onshore wind repower upgrade agreement with Taiwan Power Company. GE Vernova will supply 25 repower upgrade kits to extend wind turbines beyond their original design life.
Dell’s joint procurement of renewable energy with 11 of its upstream supply-chain partners has been approved by the Fair Trade Commission in the first case of this kind.
An alternative fuel platform for Taiwan’s ports will be established to align with an anticipated carbon pricing mechanism for the shipping industry.
The approval of large offshore wind projects contributed to a 40% YoY increase in foreign investment into Taiwan in the first ten months of this year.
As of September, Taiwan has more than 15GW of installed solar capacity, with another 15GW needed to meet the government’s target of 31GW by 2030. An analyst from ITRI2 sees this as an opportunity for Taiwan’s domestic solar manufacturers - even as Chinese oversupply forces global prices down. Given international efforts to decouple from China, Taiwanese solar manufacturers should continue to target overseas markets, especially the US and Japan.
Climate
A carbon capture and storage (CCUS) pilot project (10,000 tons capacity) will be launched next year with injection expected to begin in 2029. If all goes smoothly, Taiwan plans for commercial-scale carbon storage facilities to be deployed by 2035. To support CCS technology in the power sector, a new British Standard for monitoring and quantifying carbon-abated electricity in CCUS-enabled power generation, PAS 247, was launched this week.
Greenpeace called on the government to protect children from extreme heat referencing a study which showed the summer temperatures of 16 city parks exceeded 48°C. The Ministry of Environment responded that extreme heat protection measures will be integrated into the national adaptation action plan next year.
During the state visit of the Prime Minister of Tuvalu (one of Taiwan’s 12 remaining diplomatic allies), President Lai highlighted climate change as a key area of cooperation:
“Together, we will face the challenges posed by geopolitics and climate change, jointly enhancing our people’s well-being and our nations’ prosperity.”
Seven allies expressed their support of Taiwan’s UNFCCC participation at the High Level segment of COP30.
Environment Minister Peng Chi-ming visited Paraguay, another of Taiwan’s diplomatic allies, to discuss collaboration on climate and environmental governance.
Taiwanese bank E.Sun joined the Nature Investment Coalition, a public-private initiative which aims to “promote the financing and implementation of nature-positive investments that prioritise environmental protection, biodiversity conservation and the restoration of global ecosystems.”
The Taiwan Indigenous Sustainable Development Association signed a memorandum of understanding with Canadian Simulation Technology Company RWI to use AI technology to predict extreme weather impacts and enhance disaster resilience.
Qishan Sugar Factory Environmental Education Center in Kaohsiung became the first environmental education site in Taiwan (out of 278) to complete a full carbon footprint survey.
Soil around Taiwan fir trees sequesters more carbon than soil around other tree species. This could present an opportunity for Taiwan’s forest carbon sink plans, as planting tree species with better carbon sink capacity could increase forests’ competitiveness in carbon credit markets.
Guava harvests in central Taiwan were hit by typhoons and heavy rains earlier this year with only 20-30% of the usual crop available, leading to a surge in prices.
Brief background: nationally determined contributions (NDCs) are countries’ self-determined climate goals and emissions-reduction plans, submitted every five years to the UNFCCC. NDCs were established during COP21 in 2015 to achieve the Paris Agreement’s goal to limit warming to 2C. Taiwan is excluded from participating in the official UN climate regime, yet has voluntarily submitted NDCs for over a decade. This voluntary compliance is motivated by a desire to gain international support and recognition, as I explore in more detail in this 2024 Taiwan Insight article.
The Industrial Technology Research Institute (ITRI) is Taiwan’s leading R&D institution, and helped kick-start Taiwan’s world-leading semiconductor industry.