An Overview of Taiwan’s Legal and Policy Development on Natural Carbon Sink

An Overview of Taiwan’s Legal and Policy Development on Natural Carbon Sink

Published: 2024.08.12
Accepted: 2024.08.09
30
Professor
Department of Financial and Economic Law; Dean, Office of International Affairs, National University of Kaohsiung, Taiwan

ABSTRACT

In response to the escalating climate crisis and over 140 countries pledging to achieve net-zero emissions by 2050, enhancing natural carbon sinks has emerged as one of the key strategies to global efforts for climate change mitigation. Natural carbon sinks in forests, oceans, wetlands, and soils have shown great potential to capture and sequester carbon dioxide (CO2) from the atmosphere. It is considered a natural-based solution (NBS) to offset human-induced emissions. This article first explores the international trend toward developing and enhancing natural carbon sinks, examining the scientific, political, and economic aspects that shape these efforts. Taiwan has established a series of legal and policy initiatives that aim to enhance natural carbon sinks. This article provides an overview of the legal and policy frameworks that Taiwan has developed to enhance natural carbon sinks, highlighting key legislation, government programs, and international collaborations. Taiwan's policy frameworks reflect a holistic approach to integrating biodiversity conservation and climate change mitigation measures. Some suggestions for policymakers seeking to enhance natural climate solutions through legal implementation will also be illustrated based on Taiwan’s legal experience.

Keywords: natural-based solution, carbon sink, climate change, net-zero emission, climate change mitigation

INTRODUCTION

In response to the escalating climate crisis and over 140 countries pledging to achieve net-zero emissions by 2050, enhancing natural carbon sinks has emerged as one of the key strategies to global efforts for climate change mitigation. Natural carbon sinks in forests, oceans, wetlands, and soil have great potential to capture and sequester carbon dioxide (CO2) from the atmosphere. It is considered a natural-based solution (NBS) to offset human-induced emissions. Taiwan has made significant progress in enhancing natural carbon sinks through a series of legal and policy initiatives. Natural carbon sinks play a crucial role in sequestering carbon dioxide (CO2) from the atmosphere helping significantly to achieve net-zero emission goals.

This article provides an overview of the legal and policy frameworks that Taiwan has developed to enhance natural carbon sinks, highlighting key legislation, government programs, and international collaborations. This article explores the international trend toward developing and enhancing natural carbon sinks, examining the scientific, political, and economic aspects that shape these efforts.

THE INTERNATIONAL TREND ON NATURAL-BASED SOLUTIONS TO CLIMATE CHANGE SCIENTIFIC FOUNDATIONS

The concept of natural carbon sinks is based on the planet’s carbon cycle, wherein carbon is exchanged among the atmosphere, land, and oceans. Research indicates that the conservation and restoration of ecosystems capture and store carbon and provide around one-third of the cost-effective mitigation needed by 2030 to stabilize global warming to below 2°C (Bronson, 2017). Specifically, research findings show that certain practices, such as reforestation, afforestation, seagrass growing, and sustainable agriculture practices, can significantly boost the carbon sequestration capacity of natural carbon sinks ( Nathalie Seddon, 2019).

Recognizing the crucial role of natural carbon sinks in achieving carbon neutrality goals, international policy frameworks have increasingly incorporated NBS as one of the core elements of climate action plans. The Paris Agreement, a binding international agreement that aims to mitigate climate change adopted in 2015 explicitly recognizes “the importance of the conservation and enhancement, as appropriate, of sinks and reservoirs of the greenhouse gases referred to in the Convention.” It also calls upon contracting parties to pursue strategies that enhance carbon sinks as part of their nationally determined contributions (NDCs) to limit global average temperature to well below 2°C. Many contracting countries to the Paris Agreement have thus launched policy initiatives to enhance natural carbon sinks as key mitigation approaches incorporated in their NDCs submission.

China initiated the “Grain for Green” program to convert farmlands into forest and grasslands aiming to enhance biodiversity and carbon sequestration capacity. ( Li Zhiyong, 2003) India has committed to creating an additional carbon sink of 2.5 to 3 billion tons of CO2 equivalent through extensive afforestation and reforestation programs by 2030. The European Union adopted the Green Deal that provides substantial funding and legislative support for initiatives aimed at protecting and expanding forests, improving soil health, and restoring wetlands. Additionally, the EU’s Biodiversity Strategy for 2030 specifically targets the restoration of degraded ecosystems to bolster their role as carbon sinks (EU, Biodiversity Strategy, 2020).

In promoting the development of natural carbon sink measures globally to achieve climate mitigation goals, it is well noted that economic incentives play a crucial role. Corporations and individuals increasingly seeking to offset their carbon footprints can purchase carbon credits from voluntary carbon markets generated from projects involving reforestation, afforestation, and improved land management practices that sequester carbon. The development of carbon markets and carbon pricing mechanisms provide strong financial incentives for landowners and businesses to engage in carbon sink enhancement projects. For instance, the UN-supported REDD+ (Reducing Emissions from Deforestation and Forest Degradation) program provides economic incentives for stakeholders in developing countries to reduce deforestation and enhance forest carbon stocks (Felicani, 2024).

Additionally, green bonds and blue bonds are becoming favorable financial instruments in financing natural carbon sink enhancement projects such as the restoration of forests and wetlands. Green bonds and blue bonds are innovative financial instruments designed to support environmental conservation. Green bonds are debt securities issued by financial institutions to raise capital for financing projects that promote renewable energy, pollution prevention, and ecological conservation.

Blue bonds also serve as financial instruments that specifically aim at aqua environment conservation. They finance projects implementing ocean, coastal, and wetland ecosystem conservation or restoration. France and Germany have issued green bonds while some Nordic countries issued blue bonds to finance large-scale environmental projects that contribute to carbon sequestration (Nagisa, 2022).

Despite the promising trends, several challenges underestimate the effectiveness of natural carbon sink development. As the demand for agricultural land, urban development, and bioenergy crops increases, balancing these competing demands requires integrated land-use planning and policy coherence across sectors. Moreover, the permanence and monitoring of carbon sequestration projects present technical and logistical challenges. Ensuring that carbon remains stored in forests or soils over the long term requires robust monitoring systems and mechanisms to prevent practices like illegal logging and land conversion.

The international trend towards the development of natural carbon sinks reflects a growing recognition of their vital role in mitigating climate change. While significant progress has been made, the establishment of appropriate legal and policy support is necessary to overcome the challenges and fully harness the potential of these natural systems. By integrating scientific knowledge, supportive policies, and economic incentives, the global community can enhance natural carbon sinks and move closer to achieving climate stability. Natural carbon sinks not only sequester carbon but also provide co-benefits such as biodiversity conservation, water regulation, and livelihood support. Therefore, investing in the development and preservation of these vital ecosystems is an investment in a sustainable and resilient future for all.

OVERVIEW OF TAIWAN’S POLICY INITIATIVES IN PROMOTING NATURAL CARBON SINK

Taiwan government has launched several programs and initiatives to promote natural carbon sinks. The following illustrates a series of policy initiatives and action programs aimed at strengthening carbon sinks. Taiwan's policy frameworks reflect a holistic approach to integrating biodiversity conservation and climate change mitigation measures.

  1. Taiwan’s Pathway to Net-Zero Emissions in 2050: In March 2022, Taiwan officially published “Taiwan’s Pathway to Net-Zero Emissions in 2050”, which provides the policy roadmap to achieve net-zero emissions goal by 2050. The pathway identifies the natural carbon sinks as one of 12 key strategies for achieving GHG reduction targets. The primary pathway of the carbon sink is to develop solutions for carbon dioxide removal (CDR) by nature, with a focus on ecosystem conservation management, technology innovation, and carbon credit mechanisms to enhance carbon sink and sequestration in forest, soil, and marine environments. The pathway sets the goal of carbon sequestration of 1,357,500 metric tons of CO2e from forests, soils, and oceans by 2030. (Ministry of Agriculture, 2023)
  2. The Biodiversity and Sustainable Development Action Plan: In 2015, Taiwan initiated the Biodiversity and Sustainable Development Action Plan as the policy framework outlines the target and action approaches to protect biodiversity and critical habitats from 2015 to 2030. The plan aims to designate 35% of territorial land as protected areas to protect natural habitats and to restore degraded ecosystems. It highlights the importance of protecting species and ecosystems that contribute to carbon sequestration.
  3. The Low Carbon and Sustainable Homeland Program: This certification program is initiated by the Ministry of Environment which aims to encourage local communities to be credited as low-carbon and sustainable homelands by adoption of energy efficient measures, renewable energy installation, and ecological greening infrastructure and buildings. Ecological greening promotes the establishment of ecological corridors, habitat and eco-network, and afforestation in urban areas by planting native trees. The program enhances local carbon sinks and fosters community involvement in climate action.
  4. The Afforestation and Reforestation Plan: The Ministry of Agriculture is responsible for overseeing the program since 2009. The program aims to increase forest coverage through afforestation and reforestation projects. The program provides financial incentives (US$4,000/ha) and technical support to landowners and forest farmers engaged in tree-planting activities. The program has successfully planted trees on 60,000 hectares by 2018, contributing to carbon sequestration and biodiversity conservation (Ministry of Agriculture, 2009).
  5. Construction of Green Corridor Plan: The plan aims to generate a green redevelopment of land and forestry resources and a quality environment. The Ministry of Agriculture provides economic incentives for farmers and agricultural entrepreneurs to reforest the fallowed farmland to generate green resources in the plain areas. By linking forests, wetlands, and urban green spaces, the plan enhances the connectivity of natural habitats, promoting biodiversity while enhancing the carbon sinks.
  6. The Wetland of Importance Conservation Action Program: This initiative, coordinated by the Ministry of Interior aims to restore degraded wetlands and enhance their ecological functions. NGOs, local governments, or private parties could apply for funding support to implement wetland restoration projects under this initiative. The project encompasses wetland restoration, habitat creation, and sustainable management practices that enhance carbon sequestration and support biodiversity.

OVERVIEW OF TAIWAN’S LEGAL DEVELOPMENT IN PROMOTING NATURAL CARBON SINK

In recognition of the significant role of promoting natural carbon sinks to achieve net-zero emission goals, Taiwan has adopted a series of legislation that provides a comprehensive legal framework for conservation, afforestation, and sustainable land management. Taiwan's commitment to climate change governance is embodied in its comprehensive Climate Change Response Act (CCRA), enacted in 2015. This legislation sets a robust framework for reducing greenhouse gas (GHGs) emissions and climate-responsive measures. The Climate Change Response Act explicitly defines the natural carbon sink as the sequestration and storage of carbon dioxide or other GHGs removed from their emission sources or atmosphere by trees, forests, soils, oceans, stratum, facilities, or other sites. Article 3 of the CCRA indicates that the government should jointly promote and manage natural carbon sinks in the Indigenous peoples’ regions with Indigenous peoples. Article 5 of the CCRA requires the government to consult with local Indigenous peoples and obtain their approval before any decisions on the land development, use, or restriction involving the land of the peoples.

The CCRA acknowledges the significance of natural carbon sinks for offsetting GHG emissions from industrial and other human activities. The CCRA requires the government to integrate natural carbon sink enhancement into broader climate policies and national development plans. This integration ensures a coordinated approach across different sectors, aligning forestry, agriculture, and environmental conservation efforts with Taiwan's overall climate goals. The following provides relevant legislation that aims to protect, restore, and conserve forests, wetlands, and soils to enhance natural carbon sinks.

a. Afforestation and Reforestation: The Forestry Act is the primary legislation governing forest management in Taiwan. The Act mandates the conservation and sustainable use of forest resources, emphasizing afforestation and reforestation. The Act has been instrumental in expanding forest cover and enhancing the carbon sequestration capacity of Taiwan's forests. It promotes large-scale tree planting and forest management projects, providing incentives for landowners and communities to engage in afforestation and reforestation to increase forest cover and improve biodiversity.

b. Wetland Conservation: Recognizing wetlands as critical carbon sinks, the Wetland Conservation Act, enacted in 2013, aims to protect and restore Taiwan's wetlands. It provides guidelines for wetland management, restoration projects, and sustainable use practices. These efforts are intended to enhance the carbon sequestration capacity of wetlands while preserving their ecological functions.

c. Sustainable Agriculture: The Organic Agriculture Promotion Act mandates the Ministry of Agriculture to initiate an Organic Agriculture Promotion Program that encourages sustainable agricultural practices that increase soil carbon content. Techniques such as cover cropping, reduced tillage, and organic farming are promoted to enhance carbon sequestration in agricultural soils.

d. GHGs Voluntary Reduction Management Regulation: The Climate Change Response Act mandates the Ministry of Environment to promulgate this regulation to provide detailed application procedures, certification criteria, institutional approval mechanisms, and screening principles for GHG Voluntary Reduction Projects aiming to obtain carbon credits.

e. Implementation and Monitoring: The Climate Change Response Act establishes a framework for regular monitoring and reporting on the status of natural carbon sinks. This includes the use of advanced technologies, such as remote sensing and geographic information systems (GIS), to track changes in forest cover, wetland areas, and soil carbon levels.

SOME OBSERVATIONS AND SUGGESTIONS FOR POLICY-MAKERS

While Taiwan has made significant progress in promoting natural carbon sinks through legal and policy support, several challenges need to be tackled. They are Land use competition balancing urbanization and ecosystem conservation, lack of sustainable funding, and impacts of extreme weather pose obstacles to the effective implementation of carbon sequestration initiatives. For instance, urbanization and infrastructure development can compete with afforestation and conservation efforts, while extreme weather events, such as typhoons, can damage forests and wetlands. In response to these challenges, the following provides some suggestions for further enhancing natural carbon sinks.

  1. Integrating Carbon Sequestration with Climate Adaptation Policy: The integration of carbon sequestration with climate adaptation measures could seek synergetic benefits. such as increasing green lands that enhance flood control and drought resilience.
  2. Strengthening Monitoring through Utilization of Innovative Technology and Data Collection: The adoption of advanced remote sensing, geographic information systems (GIS), and big data analytics can improve the monitoring and management of natural carbon sinks. These technologies enable more precise tracking of carbon stocks and flows, enhancing the effectiveness of policy interventions.
  3. Strengthening Community Engagement: Empowering local communities and stakeholders to participate in carbon sequestration projects can enhance the sustainability and impact of these initiatives. Community-based forestry, agroforestry, and wetland conservation projects can provide economic and social benefits while contributing to carbon sequestration.
  4. Enhancing Financial Mechanisms: Legal development must establish innovative financial instruments, such as green bonds and carbon credits, that can attract private investments in carbon sequestration projects. These mechanisms can provide sustainable funding for large-scale afforestation, reforestation, and wetland restoration efforts. Establishing a comprehensive law and policy framework facilitating financial mechanisms is vital for the promotion of sustainable agriculture development (Nagisa, 2022).
  5. The enhancement of International Collaboration: Taiwan's efforts to promote natural carbon sinks are bolstered by international collaboration and participation in global initiatives. Taiwan is capable of sharing knowledge and best practices in afforestation, wetland restoration, and sustainable land management with international partners. For instance, Taiwan is a member of the “Global Research Alliance on Agricultural Greenhouse Gases”, which aims to reduce GHG emissions from agriculture while enhancing food security. The active engagement of the alliance could promote the exchange of research findings and the adoption of practices that increase carbon sequestration in agricultural lands.

CONCLUSION

Taiwan's comprehensive legal and policy framework for enhancing natural carbon sinks reflects its commitment to achieving net-zero emissions by 2050. Through innovative programs and robust legislation, Taiwan is on its pathway to integrating natural-based solutions into the overall climate mitigation framework. The international community might learn lessons from Taiwan's holistic approach, which combines scientific knowledge, economic incentives, and community involvement through comprehensive legal and policy support. By continuing to develop and refine legal frameworks facilitating natural-based solution strategies, international communities could not only achieve global climate goals but also ensure sustainable and resilient ecosystems and human health protection.

REFERENCES

Bronson W. Griscom, Justin Adams, Peter W. Ellis, and Joseph Fargion, Natural climate solutions, Earth, Atmospheric, and Planetary Sciences, 114 (44) 11645-11650 (2017), available at, https://www.pnas.org/doi/10.1073/pnas.1710465114

EU, Biodiversity strategy for 2030 (2020), available at, https://environment.ec.europa.eu/strategy/biodiversity-strategy-2030_en

Felicani-Robles, F. (2024) Comparative study of carbon rights in the context of jurisdictional REDD+ – Case studies from Africa, Asia and the Pacific, and Latin America and the Caribbean. Rome, FAO. available at, https://openknowledge.fao.org/server/api/core/bitstreams/3fb49fa9-7e95-4310-a188-e0c2711c89f9/content

Ministry of Agriculture of Taiwan, Taiwan 2050 Net-Zero Transition Carbon sinks (2023),available at,  https://ws.ndc.gov.tw/Download.ashx?u=LzAwMS9hZG1pbmlzdHJhdG9yLzExL3JlbGZpbGUvMC8xNTA0Ni8wOWQ1YWYwZS0zM2RkLTQwNGEtOGFjOC1hMDI0ZjViZmRjZGQucGRm&n=MDlfQ2FyYm9uIFNpbmtzIChkcmFmdCkucGRm&icon=.pdf

Ministry of Agriculture of Taiwan, COA Promotes Afforestation Program among Public Organizations and Private Sector, https://eng.moa.gov.tw/theme_data.php?theme=eng_news&id=204&print=Y

Nagisa Shiiba, Hsing Hao Wu, Michael C. Huang, Hajime Tanaka, How blue financing can sustain ocean conservation and development: A proposed conceptual framework for blue financing mechanism, Marine Policy, Volume 139, 2022,104575,

IUCN, Nathalie Seddon etl., Nature-based Solutions in Nationally Determined Contributions,  https://www.naturebasedsolutionsinitiative.org/wp-content/uploads/2019/09/NBS_in_Nationally_Determined_Contributions_final_web.pdf

Li Zhiyong, A policy review on watershed protection and poverty alleviation by the Grain for Green Programme in China (2003), available at https://www.fao.org/4/ae537e/ae537e0j.htm

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