Agricultural Policy Planning for Carbon Emission Reduction in Taiwan

Agricultural Policy Planning for Carbon Emission Reduction in Taiwan

Published: 2024.07.29
Accepted: 2024.07.29
85
Distinguished Professor
Department of Forestry, National Chung Hsing University, Taiwan
Program in Biological and Sustainable Technology, National Chung Hsing University
Department of Forestry, National Chung Hsing University

ABSTRACT

The greenhouse effect leads to climate change and extreme weather, impacting environmental sustainability, human survival, food security, and the economy. Reducing atmospheric CO2 and decoupling greenhouse gas emissions from economic growth is a global priority. In order to stabilize greenhouse gas concentrations to prevent climate interference, the Paris Agreement mandates Nationally Determined Contributions for climate action. Nature-based Solutions (NbS) are widely discussed for their dual role in removing greenhouse gases and enhancing human well-being and ecosystem services. Although Taiwan's agriculture sector only contributed 1.17% (29 ktCO2e) of the nation's total GHG emissions in 2020, the agriculture sector stands out as the sole measurable sector for carbon sink evaluation. As the forests/green carbon, soils/yellow carbon, and oceans/blue carbon, which are NbS, can be carbon-negative strategies, the agriculture sector plays significant roles. On World Earth Day 2021, Taiwan announced its commitment to achieving net-zero emissions by 2050. Subsequently, in March 2022, Taiwan formally unveiled "Taiwan’s Pathway to Net-Zero Emissions in 2050." The four major transition strategies encompass "energy transition," "industrial transition," "lifestyle transition," and "social transition," while the two major governance foundations focus on "technological research and development" and "climate legislation." Therefore, The Ministry of Agriculture would accomplish the goal of net-zero emission by 2040, and has set out 19 strategies and 59 measures under the four major aspects of "reduction on carbon emission," "enhancement of carbon sink," "circular agriculture," and "green trend." Moreover, the Green Payments Program, Organic Agriculture Promotion Act, Regulations for Subsidies Program of Organic Agricultural Production and so on are used to reach the goal. As the Taiwan Agricultural Research Institute of the Council of Agriculture (reshuffled as the Ministry of Agriculture on August 1, 2023) hosts the "Internationalization Mechanism Coordination and Establishment Project for Taiwan's Agricultural Carbon Credits," three "Agricultural Carbon Reduction Methodology Seminars" were organized, and draft methodologies were presented. This study reviews relevant literature and official documents to analyze the agricultural sector's strategic plan, technology, policy, and incentives for reducing GHG emissions. Consequently, this study proposes recommendations for Taiwan's future policy planning. These recommendations encompass improving GHG emission inventories, planning recommendations for carbon credit trading within the agricultural sector, emission reduction in rice planting and the livestock industry, increasing agricultural land emission reduction, forest carbon credits, reducing emissions in fisheries, and conducting an inventory of agricultural GHG emissions. However, trading carbon credits from these sinks offers a lucrative business model for agricultural carbon reduction. Furthermore, increasing soil carbon sequestration, organic farming, and sustainable practices are crucial not only for reduce GHG emission but also for sustainable agricultural production. The government is incentivizing agricultural carbon reduction through carbon credit programs. The Taiwan Carbon Solution Exchange (TCX), established in August 2023, facilitates carbon credit trading. Current credits primarily come from non-agricultural sources. To stay competitive, Taiwan must enhance its agricultural carbon credit systems and align with international markets. Developed countries' carbon regulations encourage improvements and protect local enterprises. Taiwan needs robust carbon credit certification and trading systems to integrate into the global market.

Keyword: Net-Zero, Agricultural Policy, Carbon-negative Strategies, Nature-based Solutions.

INTRODUCTION

The rapid advancement of industry and technology has yielded favorable outcomes for economic expansion and the enhancement of human convenience. However, akin to water's dual nature as a blessing in the desert yet a curse to a drowning individual, these advancements have engendered adverse environmental consequences. These include extensive exploitation and depletion of natural resources, degradation of the Earth's ecosystem, exacerbation of the greenhouse effect, and resultant global warming. As delineated in the Sixth Assessment Report (AR6) by the United Nations Intergovernmental Panel on Climate Change (IPCC), the greenhouse effect poses significant threats to environmental equilibrium, human sustenance, food security, and socioeconomic progress. Consequently, initiatives aimed at mitigating the escalating concentration of CO2 in the atmosphere and decoupling economic growth from greenhouse gas (GHG) emissions (Oberle et al., 2019) have emerged as imperative global concerns.

In response to the Nature-based Solutions (NbS) initiative introduced by the World Bank (WB) in 2008 as a means to mitigate greenhouse gas (GHG) emissions and address climate change, the International Union for Conservation of Nature (IUCN) proposed the IUCN Global Standard for Nature-based Solutions. This standard delineates NbS as strategies encompassing the conservation, sustainable utilization, management, and restoration of natural ecosystems, while also emphasizing their role in addressing societal challenges and effectively enhancing human well-being and biodiversity. Concurrently, NbS has garnered recognition in the Glasgow Climate Pact as a pivotal approach for mitigating the impacts of the greenhouse effect.

Aligned with this global trajectory, Taiwan announced on the 2021 World Earth Day its commitment to achieving net-zero emissions by 2050. Subsequently, in March of the following year, Taiwan formally unveiled "Taiwan’s Pathway to Net-Zero Emissions in 2050," providing a comprehensive roadmap and actionable steps toward achieving this ambitious goal. Furthermore, by year-end, Taiwan released 12 Key Strategies focusing on energy, industry, and lifestyle transitions to proactively address significant sectors and formulate concrete action plans for realizing the objectives of the Net-Zero Transition.

This study presents recommendations aimed at addressing the challenges related to national greenhouse gas (GHG) inventories and carbon offsetting within Taiwan's agriculture sector. The primary objective is to achieve a reduction in agricultural GHG emissions while simultaneously safeguarding food security.

POLICIES AND INCENTIVE MECHANISMS FOR REDUCING EMISSIONS AND INCREASING CARBON SINK

In 2020, Taiwan's agriculture sector contributed 1.17% (29 ktCO2e) of the nation's total GHG emissions (Figure 1). Despite the relatively low proportion of GHG emissions originating from agriculture, the imperative to address carbon reduction within this sector is underscored by considerations of food security (Kim et al., 2021). Additionally, the Greenhouse Gas Inventories report highlights that the agriculture sector stands out as the sole measurable sector for carbon sink evaluation. Consequently, maximizing the agricultural sector's capacity to serve as a carbon sink is paramount. Developing a low-carbon agriculture industry to augment its capacity for carbon sequestration is crucial in advancing towards the country's Net-Zero emissions goal. Leveraging the inherent advantages of agriculture to enhance carbon sinks represents a pivotal strategy for Taiwan to navigate towards achieving net-zero emissions.

Superior plan

Taiwan's commitment to achieving net-zero carbon emissions has been embedded in the second phase of the National Climate Change Adaptation Action Plan since 2013. On March 10, 2022, Taiwan officially unveiled "Taiwan’s Pathway to Net-Zero Emissions in 2050," delineating four major transition strategies and two governance foundations as the cornerstone for achieving net-zero emissions. Subsequently, in December of the same year, "12 Key Strategies for Taiwan's 2050 Net-Zero Transition" was released. These strategies elucidate the essential pathways derived from the aforementioned four major transition strategies and two governance foundations, serving as a comprehensive master plan to guide Taiwan towards its net-zero emissions target by 2050.

The 1st National Climate Change Adaptation Action Plan (2013-2017)

The first phase of the National Climate Change Adaptation Action Plan was dedicated to establishing a robust foundation for climate change adaptation. It entailed the evaluation of climate change risks, formulation of adaptation plans, and promotion of these plans particularly in high-risk regions. This comprehensive action plan comprised of various sector-specific initiatives including the Disaster Action Plan, Basic Infrastructure Action Plan, Water Resources Action Plan, Land Action Plan, Coastal Action Plan, Energy Supply and Industry Action Plan, Agricultural Production and Biodiversity Action Plan, and Public Health Action Plan. Within the realm of agricultural production and biodiversity, the focus was on conducting vulnerability analyses, assessing impacts, and devising eight distinct adaptation strategies. These strategies were supplemented with specific adaptation measures outlined within the action plans. Agricultural production encompassed activities related to the domestic cultivation and provisioning of crops, livestock, fisheries, and forestry resources. Biodiversity considerations extended to the preservation of species diversity and genetic resources of living organisms, along with the ecosystems crucial for their sustenance. This included various ecosystems such as forests, river and freshwater wetlands, coastal and saltwater wetlands, and marine environments.

The 2nd National Climate Change Adaptation Action Plan (2018-2022)

The second phase of the National Climate Change Adaptation Action Plan is primarily anchored in the framework provided by the Greenhouse Gas Reduction and Management Act, leveraging insights gleaned from the outcomes of the initial National Climate Change Adaptation Action Plan (2013-2017). This phase places greater emphasis on capacity building, encompassing a more holistic approach to fortify the country's overall readiness to address climate change. Within this phase, the focus on agricultural production and biodiversity not only continues from the previous phase but is also augmented by efforts to enhance long-term monitoring and early warning systems. Additionally, there is an integration of technological advancements to bolster response capabilities. Furthermore, efforts are directed towards the refinement of disaster relief and insurance systems. Concurrently, the phase aims to strengthen food security measures and bolster initiatives aimed at conserving biodiversity.

Taiwan’s pathway to net-zero emissions in 2050

On March 10, 2022, Taiwan’s government introduced "Taiwan’s Pathway to Net-Zero Emissions in 2050," which outlines four primary transition strategies and two key governance foundations to guide the nation towards achieving net-zero emissions. The four major transition strategies encompass "energy transition," "industrial transition," "lifestyle transition," and "social transition," while the two major governance foundations focus on "technological research and development" and "climate legislation." Notably, the pathway emphasizes the necessity of offsetting carbon emissions that are challenging to mitigate, while also considering the country's economic development. Forest carbon sinks and carbon-negative technologies are highlighted as crucial means to achieve this offsetting. Although agriculture is not explicitly mentioned within the delineated transitions, it remains an essential sector in the pursuit of net-zero emissions (National Development Council, 2023a).

The 12 key strategies for Taiwan’s net-zero transition

The 12 Key Strategies derived from the four major transition strategies and the two governance foundations encompass a range of initiatives including wind/solar photovoltaic (PV), hydrogen, innovative energy, power systems and energy storage, energy saving and efficiency, Carbon Capture, Utilization & Storage (CCUS), carbon-free & electric vehicles, resource recycling & zero waste, natural carbon sinks, green lifestyle, green finance, and just transition (National Development Council, 2023b).

Among these strategies, resource recycling & zero waste and natural carbon sinks are categorized under agricultural net-zero strategies. Under resource recycling & zero waste, 190,000 tons of agricultural waste generated from farming, livestock production, and fisheries are allocated to biomass, organic chemicals, metals and chemicals, and inorganic recycled pellets. This approach facilitates waste recycling, thus contributing to a circular economy by reusing, fueling, and fertilizing of agricultural by-products.

Regarding natural carbon sinks, the focus is on enhancing the efficiency of carbon sequestration across three primary domains: forests/green carbon, soils/yellow carbon, and oceans/blue carbon. Forest carbon sequestration strategies entail increasing forest area, improving forest management practices, and maximizing the utilization of domestic timber products. Soil carbon sequestration strategies involve bolstering soil management practices and implementing carbon-negative farming methods. Ocean carbon sequestration strategies encompass developing measurement methodologies for oceans and wetlands, implementing management measures to enhance ocean carbon sinks, promoting aquatic plant restoration, and advancing complex aquaculture operation models. These efforts are estimated to result in an additional sequestration of 13,575,000 tons of CO2e by the year 2030.

Net-zero strategies of the Ministry of Agriculture

On September 2021, the Council of Agriculture, Executive Yuan (currently the “Ministry of Agriculture”) formally established the "Office of Climate Change Adaptation and Net-Zero Emission Project," announcing that the Ministry of Agriculture would accomplish the goal of net-zero emission by 2040, and would set out 19 strategies and 59 measures under the four major aspects of "reduction on carbon emission," "enhancement of carbon sink," "circular agriculture," and "green trend."

Since carbon reduction in the agricultural sector involves food security issues, related policies that have been promoted and continue to be implemented include green payments, organic farming and eco-friendly farming, fertilizer optimization and stabilization of supply and demand, as well as the Emerging Bamboo Industry Development Program, Sustainable Forestry Diversification Counseling Service Program, and Sustainable Forest Management and Industry Revitalization Program in the forestry sector. For the fishery industry, there are incentives for fishing moratorium and acquisition of fishing boats (rafts), and policies related to animal husbandry, such as the reuse of animal manure and the promotion of biogas power generation systems under the livestock (pig) industry revitalization and development program.

Green payments

The green payments program is structured into two phases, each with distinct objectives and approaches. The primary objectives of the first phase of the program are to reconfigure the agricultural industry's structure, ensure optimal use of farmlands, enhance domestic food self-sufficiency, secure food supply, conserve farmland resources, underscore the multifunctional value of the agricultural sector, and promote eco-friendly farming practices. These objectives are geared towards ensuring the sustainable management of the agricultural industry. The payment mechanism employed in the first phase follows a "stacked subsidy measure," which involves different stages of payment linked to farmland utilization, cultivation, production, marketing, and environmental protection activities. In contrast, the focus of the second phase of the program shifts towards facilitating basic agricultural and environmental benefits, crop incentives, and eco-friendly subsidies. This phase aims to assist farmers in adapting their farming practices in response to climate change while adopting a stacked and value-added approach to enhance production value. Additionally, it seeks to foster a high-quality crop environment, preserve the ecology of farmlands, and maximize the multiplier effect of incentivizing farmland cultivation to achieve the overarching goal of farmland preservation.

Farming methods of organic and eco-friendly

Since 2017, efforts have been made to foster the sustainable development of organic agriculture and enhance the quality of organic agricultural products. This includes extending counseling services to eco-friendly farming practitioners alongside certified organic farmers, facilitating the sharing of resources pertinent to organic agriculture. In addition to maintaining incentives and subsidies for ecological conservation in organic agricultural production, support is provided to organic and eco-friendly farmers to stabilize their operations. This support encompasses subsidies for organic certification and inspection fees, assistance for acquiring organic agricultural greenhouse facilities, establishment of simple composting facilities, and provision of organic agricultural tools and processing equipment. Furthermore, counseling services are offered to assist in the establishment of organic and eco-friendly farmers' markets, and financial aid in the form of loans for agricultural and food-related operations is available. To incentivize farmers to reduce the usage of chemical fertilizers, the "Domestic Organic Fertilizer Promotion Program" has been in effect since 2004. Additionally, the "Organic Agriculture Applicable Fertilizer Promotion Plan" has been implemented specifically for organic farmers who have attained accreditation for their organic agricultural products. Under this plan, organic farmers are incentivized and subsidized for utilizing recommended applicable organic fertilizers. These measures collectively aim to encourage the adoption of sustainable practices within the agricultural sector and promote the transition towards organic and eco-friendly farming methods.

Fertilizer optimization and stabilization of supply and demand

Aligned with the new agriculture promotion program and the national net-zero emission policy, the Ministry of Agriculture has embarked on initiatives outlined in the "Regulations for Subsidies Program of Organic Agricultural Production," "Operation Guidelines for Domestic Organic and Microbial Fertilizers for Farmland Fertility," "Operation Guidelines for Crop Biological Control," and "Operation Guidelines for Materials of Eco-friendly Plant Protection." Efforts are directed towards promoting subsidies for various types of fertilizers including organic fertilizers, microbial fertilizers, organic compound fertilizers, and slow-release compound fertilizers. Additionally, subsidies for eco-friendly plant protection materials and crop biological control are being incentivized. These measures are complemented by the promotion of rational fertilization practices and the cultivation of green manure crops. The overarching aim is to enable domestic farmers to leverage diverse fertilizer materials to enhance farmland fertility, optimize fertilizer utilization efficiency, and encourage a reduction in the reliance on chemical fertilizers and pesticides. By diminishing the usage of chemical pesticides and fostering rational fertilization practices, the initiative not only supports the development of organic and eco-friendly farming methods but also contributes to the mitigation of carbon emissions from farmlands. Furthermore, by promoting soil health and maintaining farmland soil, the initiative aids in increasing soil carbon sequestration, thereby aligning with the broader objective of enhancing soil carbon sinks.

METHODOLOGIES FOR AGRICULTURAL CARBON EMISSION REDUCTION

In terms of technological methodologies for agricultural carbon reduction in our country, current methods mainly revolve around small-scale reduction approaches such as the "AR-TMS0001 Reforestation and Afforestation Carbon Sequestration Project." This initiative involves planting trees and nurturing them to increase carbon storage, thus making it applicable to reforestation projects with an area larger than 0.5 hectares and an annual average removal quantity of less than 16,000 metric tons of CO2e, initiated after January 1, 2000. As the Taiwan Agricultural Research Institute of the Council of Agriculture (reshuffled as the Ministry of Agriculture on August 1, 2023) hosted the "Internationalization Mechanism Coordination and Establishment Project for Taiwan's Agricultural Carbon Credits," three "Agricultural Carbon Reduction Methodology Seminars" were organized in September 2023. Following international voluntary carbon reduction certification regulations, stakeholders were invited to these seminars where draft methodologies were presented, including:

Methodology 1: Application of Biochar in Soil and Non-Soil (Draft)

The production of biochar from waste biomass through a clean process, followed by its application in soil or suitable non-soil contexts for long-term end use to retain carbon.

Methodology 2: Utilization of Aquatic Plants or Microorganisms for Sequestering CO2 from Flue Gas and Converting it to Biomass Fuel (Draft)

Utilizing aquatic plants or microorganisms to capture CO2 from flue gas and converting to biomass for application in existing stationery and transportation biomass fuel production.

Methodology 3: Reduction of Emissions from Livestock Wastewater through Reuse Methods (Draft)

Reducing methane emissions by reducing the volume of livestock wastewater in treatment processes through reuse methods.

Methodology 4: Methane Emission Reduction through Composting (Draft)

Utilizing biomass or other organic matter through controlled biological treatment processes, including aerobic treatment and appropriate compost soil application, to increase soil organic carbon for long-term carbon sequestration purposes.

Methodology 5: Agricultural Land Management Methodology (Draft)

Modifying one or more existing agricultural management measures, including introducing new measures, discontinuing, or adjusting existing measures, to reduce greenhouse gas emissions and/or increase greenhouse gas removal.

Methodology 6: Reduction of Greenhouse Gas Emissions by Reducing Nitrogen Fertilizer Application (Draft)

Reducing greenhouse gas emissions from agricultural or grassland areas by reducing excessive nitrogen fertilizer application during production and application processes.

Methodology 7: Substitution of Waterlogged Fallow Farmland with Azolla as Green Manure to Reduce Greenhouse Gas Emissions (Draft)

Replacing waterlogged fallow farmlands with Azolla as green manure to reduce greenhouse gas emissions from paddy fields.

POLICY PLANNING SUGGESTIONS

After conducting literature review and analyzing agricultural net-zero carbon emission policies, while taking into account the unique characteristics of Taiwan's agricultural development, this study proposes recommendations for Taiwan's future policy planning. These recommendations encompass greenhouse gas emission inventories, planning recommendations for carbon credit trading within the agricultural sector, emission reduction in rice planting and the livestock industry, increasing agricultural land emission reduction, forest carbon credits, reducing emissions in fisheries, and conducting an inventory of agricultural greenhouse gas emissions.

Carbon sink in agriculture sector

Presently, Taiwan's assessment of land use, land use change, and forestry primarily concentrates on carbon sequestration within the forestry sector, thus overlooking the potential contributions from other carbon sinks. Furthermore, the country's greenhouse gas emissions inventory lacks comprehensive data pertaining to grasslands, wetlands, and agricultural lands. To address this discrepancy, it is recommended to incorporate parameters derived from established frameworks such as those provided by the Intergovernmental Panel on Climate Change (IPCC) or comparable international standards to estimate carbon sinks. Alternatively, localized scientific research endeavors could be pursued to develop methodologies for the assessment of soil and ocean carbon sinks.

Regarding agricultural production, rice cultivation and livestock operations are identified as principal contributors to greenhouse gas emissions in Taiwan, underscoring the necessity for effective management strategies. Taiwan possesses considerable potential for fostering forest, soil, and ocean carbon sinks, advocating for their prioritization in carbon credits trading initiatives. Additionally, surplus agricultural resources significantly impact carbon emissions. Embracing a circular economy paradigm entails accurate categorization of agricultural surplus resources and harnessing scientific and technological innovations to minimize agricultural waste while maximizing resource utilization and value.

Carbon credit trading in the agricultural sector

The predominant approach in advanced countries regarding natural carbon credits revolves around domestic offsets, aligning with the global trend towards localization and reducing carbon leakage. Moreover, advanced nations incentivize companies to prioritize offsets and bolster domestic green investment through government compensation mechanisms. In instances of priority projects, international carbon sinks are only procured if domestic quotas are insufficient, underscoring the significant role of domestic carbon offset systems for enterprises. Carbon sinks must undergo verification procedures by the Carbon Offset Mechanism before being converted into carbon credits.

For Taiwan's agricultural sector, a crucial aspect to address is the verification of the carbon offset mechanism, particularly concerning forest management and regenerated agricultural soil. Oversight of projects involving carbon sinks, such as management and marine wetland conservation, should fall under the purview of relevant professional competent authorities.

Using agriculture and forestry as exemplars, the existing legal framework, regulations, and scientific understanding of agriculture and forestry management are not as comprehensive as desired. Thus, it is preferable for the Ministry of Agriculture to serve as the competent authority for converting carbon credits from natural carbon sinks, while the Ministry of Environment should be responsible for issuing these credits. In terms of procedures, reliance should be placed on project applications confirmed by a third party, with provisions for random or on-site inspections to mitigate misjudgments of agricultural and forest carbon credits. Additionally, the government should strategize to establish procedures and methods in accordance with two major international carbon inspection standards, namely the Carbon Verification Standard (VCS) and the Gold Standard (GS).

The prevailing practice in various countries emphasizes aiding domestic natural carbon credits to provide offsets for domestic enterprises. Consequently, it is recommended to limit the lifespan of forest carbon sinks to 20-30 years, while agricultural (soil) carbon sinks should endure for 8-16 years. Given that a significant portion of Taiwan's agricultural land is managed by small-scale farmers, often overseeing areas of less than 0.5 hectares, effective integration of private small farmers or forest farmers through integrated management is advised to encourage their participation in carbon credits trading.

Reducing emissions from rice cultivation

Strategies aimed at mitigating greenhouse gas emissions from rice fields encompass a variety of approaches, including water management, selection of suitable rice varieties, modification of fertilization techniques, utilization of inhibitors, and implementation of crop rotation.

Effective water management plays a pivotal role in reducing methane emissions from rice fields. However, the development of practical and feasible management measures is essential. These measures may include optimizing fertilizer application methods, improving irrigation management practices, properly managing rice residues, cultivating high-yielding rice varieties, and promoting efficient water usage. Additionally, the implementation of rice rotation and fallow periods can contribute significantly to achieving emission reduction targets. By adopting these management practices, methane emissions can be reduced without exacerbating nitrogen losses, leading to enhanced rice yields and sustainable agricultural production.

Animal husbandry emissions reduction

Common measures to reduce greenhouse gas emissions in animal husbandry can be categorized into two main areas: addressing emissions from fermentation in the gastrointestinal tract and implementing effective excrement treatment methods. To mitigate emissions from fermentation in the gastrointestinal tract, improvements can be made starting from the feed aspect. Enhancing the nutritional balance of feed can optimize animal nutrition and production efficiency while simultaneously reducing methane emissions from livestock and poultry. In terms of excrement treatment, when composting is utilized to manage animal waste, it is advisable to regularly aerate the compost to enhance decomposition and effectively reduce methane production.

In Taiwan's livestock industry, carbon reduction management efforts have focused on initiatives such as using green corn feed and implementing biogas recovery and management systems. Research suggests that incorporating high-quality corn silage into livestock diets can lead to a reduction in methane production by 10% to 12%. However, a common challenge faced in practice is the prevalence of small-scale operations among livestock farmers. To address this challenge and promote more efficient management practices, there is a need to integrate livestock farmers into coordinated management systems.

Reducing and increasing emissions from agricultural land

Taiwan has delineated three key directions for the advancement of soil carbon sinks, focusing on enhancing soil management practices, adjusting crop farming patterns, and harnessing soil biological resources, primarily through the adoption of regenerative agriculture practices. Given that a majority of agricultural land in Taiwan is managed by small-scale farmers, with relatively limited land area and low levels of mechanization, it becomes imperative to tailor strategies for increasing soil carbon sinks while considering regional variations in production.

In regions characterized by lower productivity, the adoption of no-till or fallow methods can significantly enhance the value of ecosystem services and bolster productivity levels. Conversely, in areas dedicated to food production, the implementation of crop rotation not only fosters soil carbon sequestration but also conserves water resources, mitigates methane emissions, and prevents rice overproduction. Given that farmland represents the most intensively managed land use, it presents a significant opportunity for actively managing its vital carbon pool. When estimating soil carbon content, striking a balance between carbon sequestration and emissions is essential. This necessitates thorough consideration of various factors such as agricultural practices, land management techniques, and regional characteristics to ensure accurate and effective carbon accounting.

Forest carbon credits

Forest carbon credits present an opportunity for the forestry industry to align with corporate social responsibility (CSR) guidelines, particularly within the framework of environmental, social, and governance (ESG) considerations. By actively engaging in afforestation efforts, the industry can rapidly enhance forest carbon sinks, thereby underscoring the significance of forestry in economic development. Relevant laws and regulations mandate a methodology akin to Japan’s forest planting activities for afforestation initiatives in Africa. Specifically, forested land must be planted with trees and consistently maintained to qualify as part of the forest carbon sink. The entire process, from initial planning to the sale of forest land carbon credits, requires a minimum of eight years. Even after the commencement of carbon credit sales, ongoing monitoring and management of forest land for up to ten years are necessary to prevent diversion from the intended business model and ensure sustainability.

However, the current methodology for measuring carbon sinks is hindered by practical limitations. Measurement primarily focuses on the aboveground portion of forests, overlooking the underground component, often resulting in an underestimation of forest carbon sinks. Additionally, there is a scarcity of skilled professionals capable of implementing quantitative data analysis, and the costs associated with monitoring and inspection are prohibitive. Therefore, there is an urgent need to focus on talent development through university training programs and establish more cost-effective methodologies rooted in scientific research foundations. Such efforts are crucial for expediting the promotion of Taiwan's forest carbon credits and maximizing their potential impact.

Reducing fishery discharges

The primary source of carbon emissions in the fishery sector stems from energy usage. In response, the government has made continuous efforts to reduce these emissions by investing in new fishing vessels and rafts, as well as replacing outdated waterwheels. Despite this, nature-based blue carbon resources such as mangroves and algae have not yet been incorporated into carbon credit trading, despite their significant potential for development. Recognizing this potential, China has initiated marine carbon sink planning efforts, which involve assessing the carbon absorption capacities of mangroves and seagrass beds, and reevaluating national wetland conservation programs. The integration of carbon sink benefits assessment with wetland management is crucial for advancing blue carbon initiatives in the future.

However, there exists a lack of relevant research, certification mechanisms, and frameworks for carbon credit trading in this domain. To address this gap and facilitate the conservation and restoration of wetlands and seagrass beds, the establishment of a comprehensive database for wetland carbon sinks is imperative. Presently, Taiwan lacks fundamental data regarding marine carbon sinks, highlighting the urgent need for collaborative efforts among relevant stakeholders to assess carbon sink benefits, particularly those associated with seagrass beds, and to tailor conservation strategies according to wetland functions.

Moreover, the development of a fishery carbon sink assessment model is essential for maximizing marine carbon sink benefits and expanding wetland conservation areas. This model would enable the evaluation of carbon sequestration potential in fishery activities, guiding efforts to enhance carbon sink capacities in the marine environment.

CONCLUSION

Natural carbon sinks

Under the global trend towards net-zero emissions, nature-based solutions have become a prominent approach, with natural carbon sinks emerging as a key strategy for carbon reduction and sequestration worldwide. Natural carbon sinks encompass forests, soils, and marine environments. Trading carbon credits based on natural carbon sinks has become a desirable option, representing a high-quality trading project and a potentially lucrative business model for agricultural carbon reduction.

Soil carbon sequestration involves increasing organic matter within soils to enhance soil carbon sinks, coupled with changes in agricultural practices to reduce GHG emissions from soils. While Taiwan has already proposed corresponding agricultural management models and technologies for promoting green environments, organic farming, sustainable agriculture, and fertilizer quality stabilization, specific models and policies addressing agricultural carbon reduction have yet to be established. Therefore, it is imperative to refer to the carbon reduction plans of advanced countries and promptly devise suitable management models and policies tailored to Taiwan’s context and cultural background.

Incentives payment

In Taiwan's Current Policies on Agricultural Carbon Reduction and Enhancement of Carbon Sinks, Taiwan's agricultural sector has set the goal of reducing net emissions by 10% compared to the 2005 baseline year by 2025, with the aim of achieving net-zero emissions by 2040. Over the past few years, the agricultural sector has been dedicated to implementing policies aimed at agricultural carbon reduction, including incentives for greening agricultural environments, promoting organic farming and sustainable agricultural practices, improving fertilizer quality and stabilizing supply and demand, and establishing calculations for agricultural carbon footprints. According to official statistics from Taiwan, for every additional 1,000 hectares of land dedicated to organic and environmentally friendly farming practices, approximately 1,800 metric tons of chemical fertilizer usage can be reduced, equivalent to a reduction of approximately 612 metric tons of CO2e emissions.

Currently, the government is actively promoting seven methodologies for agricultural carbon reduction and enhancement of carbon sinks, aiming to reduce agricultural greenhouse gas emissions through carbon credit incentives and achieve sustainable agricultural development.

Taiwan's natural Carbon credit trading market

Taiwan officially established the Taiwan Carbon Solution Exchange (TCX) in August 2023 to facilitate the trading of carbon credits through a trading platform, assisting companies in purchasing carbon credits. The existing carbon credit exchange quotas are sourced from the replacement of old automobiles, lighting equipment, outdated agricultural machinery, oxygen increasing equipment, and the adoption of biogas or biomass fuels. Most of these exchange quotas are not related to agricultural carbon emission reduction, and currently, Taiwan's agricultural carbon emission reduction credits conversion only includes forest carbon sinks, which require newly planted forests on non-forest land through artificial intervention and reforestation to convert the amount of carbon dioxide absorbed by trees into carbon credits. Compared to advanced countries, many countries actively develop agricultural carbon emission reduction credits and the conversion carbon credit’s trading markets. Product import trade is connected with natural conservation plans and agricultural offset quotas. Taiwan's agricultural carbon emission reduction credits and their conversion carbon credits need to be further strengthened to become a trading item in the carbon credit market.

Governments worldwide, especially in developed countries, are increasingly prioritizing carbon emissions reduction and requiring annual reductions in greenhouse gas emissions during the manufacturing process. Furthermore, they are imposing restrictions on the carbon emissions of imported and exported goods, setting a series of regulations for products that do not meet carbon reduction standards. These regulations include imposing carbon taxes on imported goods, purchasing carbon emission quotas from importing countries, or carbon offset credits. This approach not only encourages companies to improve their processes and reduce carbon emissions but also increases government revenue and stimulates the carbon credit market, indirectly developing domestic agricultural carbon emission reduction credits and protecting local enterprises in trade. At present, the United States and Europe have taken the lead in imposing carbon border tariffs, with slightly different implementation methods, but their main purpose is to reduce greenhouse gas emissions, prompting companies engaged in trade with them to comply with specific improvement measures for carbon reduction and enhancement. Therefore, to avoid weakening Taiwan's industrial export competitiveness, it is necessary to actively develop domestic carbon credit certification and trading, and plan to align with the international trading market.

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