By Jane Rickards in Taipei
Taiwan’s Premier Wu Den-yih this week urged the island’s Environmental Protection Agency to draw up plans for a cap-and-trade system. At a time when the US and Australia have all but abandoned the idea, Taiwan’s preparations for a green house gas emissions trading system could eventually resemble the one used by the European Union.
But two big obstacles stand in the way of making the system work: local businesses, and Beijing.
Taiwan president Ma Ying-jeou has pledged to reduce Taiwan’s emissions levels to that of 2000 by 2025. Yet, while he is determined to introduce such a system and law makers from his ruling Kuomintang have a clear parliamentary majority, he may find it tough convincing local industries, which believe the move threatens their competitiveness, especially with respect to their rivals in neighbouring Asian nations.