Background

On April 22 (Earth Day), 2021, President Tsai Ing-wen declared Taiwan’s unwavering commitment to achieving net-zero carbon emissions by 2050. Since then, Taiwan’s government has implemented a series of proactive measures in response to the urgent climate change crisis. In March 2022, the government unveiled the comprehensive “Taiwan’s Pathway to Net-Zero Emissions in 2050” blueprint (臺灣2050淨零排放路徑). This was followed in December by the 12 Key Strategies action plan (十二項關鍵戰略行動計畫). Building upon this, in February 2023, the government announced amendments to the Greenhouse Gas Reduction and Management Act (溫室氣體減量及管理法), and changed the name of that law to the Climate Change Response Act (CCRA, 氣候變遷因應法). The renamed law strengthens national responsibilities and climate governance. The CCRA stipulates that carbon fees that will be levied, then reinvested into low-carbon initiatives and technologies. The CCRA also bolsters carbon footprint administrative mechanisms and carbon labeling of products. In May 2023, the Environmental Protection Administration (EPA) was upgraded to the Ministry of Environment (MOENV). To further expand upon the CCRA, the MOENV later announced three draft laws subsidiary to the CCRA: the Regulations for Gas Emission Inventory Registration and Inspection Management (溫室氣體排放量盤查登錄及查驗管理辦法); the Regulations for Voluntary Emission Reduction Project Management (溫室氣體自願減量專案管理辦法); and the Regulations for Greenhouse Gas Emission Offset Management (溫室氣體排放量增量抵換管理辦法)

The Regulations for Gas Emission Inventory Registration and Inspection Management

In February 2023, the EPA amended 15 articles within the Regulations for Gas Emission Inventory Registration and Inspection Management. These amendments focus on hierarchical management of greenhouse gas (GHG) inventory registration and inspection; emission calculation methods; and comprehensive management systems.

To ensure standardized guidelines for calculating GHG emissions, the draft amendments establish regulations specifying what emission factors to apply, what emission calculation formulas to use, and how to measure fuels’ lower heating values and raw materials’ carbon content in the emission calculation process.

The Regulations for Voluntary Emission Reduction Project Management

These regulations were announced by the MOENV in June 2023. The regulations make reference to international voluntary emission reduction (VER) practice, and survey GHG reduction methods, while also streamlining and enhancing the review process.

The regulations emphasize the principle that VER projects must be measurable, reportable, and verifiable (MRV). Simultaneously, such projects must fulfill five principles: Additionality, conservativeness, permanence, avoidance of harm, and no double counting. The reductions that derive from VER projects can be used to offset carbon fees or to offset increments from newly established or modified emission sources.

The Regulations for Greenhouse Gas Emission Offset Management

In July 2023, under its authorization of Article 24 of the CCRA, the MOENV announced the draft Regulations for Greenhouse Gas Offset Management. These regulations are aimed at elevating the increment offset mechanism from an “environmental impact assessment review recommendation” to a “regulatory order”.

The draft bill states that industries that are subject to environmental impact assessments under the Environmental Impact Assessment Act, and which are engaged in activities that result in increased GHG emissions, are required to do GHG offsets. Offset sources can be VER projects and GHG offset projects. The draft also stipulates that a GHG emission offset ratio must be at least 10% every year, and must be consistently implemented for a minimum of 10 consecutive years.

Next steps

In the future, the MOENV will be announcing further legislation subsidiary to the CCRA. This includes revising the Regulations for Greenhouse Gas Certification Organizations and Inventory Agencies (溫室氣體認證機構及查驗機構管理辦法), as well as formulating a new law, the Regulations for Transfer, Trading, and Auction of Greenhouse Gas Emission Reduction Credits (溫室氣體減量額度移轉、交易或拍賣管理辦法). To strengthen carbon pricing mechanisms, there are also plans to draft the Regulations for Charging of Carbon Fees (碳費收費辦法), the Regulations for Review of Carbon Fee-Based Reduction Targets and Voluntary Emission Reduction Projects (碳費指定減量目標、自主減量計畫審核辦法), and the Guidelines for Establishing Carbon Fee Rate Review Councils (碳費費率審議會設置要點).

Notes

Many of the bills/laws mentioned do not have official English titles yet, so English titles for regulations mentioned in this article are the author’s provisional translations; final, official MOENV translations may differ.

Amendments to the Space Development Act

On May 30, 2023, on the third reading, Taiwan’s Legislative Yuan passed amendments to some articles of the Space Development Act. These amendments introduced rigorous penalties for acts, whether physical or virtual, that endanger the functionality of national launch sites or of the Taiwan Space Agency (formerly the National Space Organization)’s Satellite Operations Control Center. Offenders causing fatalities could face life imprisonment or a prison term of seven years or more, along with fines of up to NT$100 million. This move aims to ensure the protection of critical national infrastructure and safeguard Taiwan’s space assets.

Consistent amendments to enhance critical infrastructure protection

Taiwan’s Executive Yuan has taken steps to enhance the protection of critical national infrastructure and prevent sabotage by initiating unified amendments to 22 laws across eight ministries. These amendments specifically target critical facilities that fall within the compass of each specific law; the amendments establish clear penalties for any actions that jeopardize proper functioning of such facilities. By including both physical facilities and information/communication systems within the scope of the protections, the government seeks to bolster Taiwan’s security and resilience.

Salient features of the amendments

The amendments introduce three major features that strengthen protective measures. First, the amended law now encompasses damage to both physical facilities and virtual information/communication systems. Second, penalties are graded based on the severity of the offense, ranging from impairing normal operations to causing serious injuries or fatalities. Third, punishment now applies to attempted offenses as well, ensuring a proactive approach to potential threats.

Penalties for physical destruction

Regarding physical destruction, the amendments prescribe different penalties that vary by offense. Offenders engaged in stealing, damaging, or using illegal means to impair the functionality of critical space infrastructure may face imprisonment of one to seven years, along with fines of up to NT$10 million. When such offenses are committed with intent to harm national security or social stability, the punishment is increased to imprisonment for three to ten years, along with fines of up to NT$50 million.

Penalties for information/communication system offenses

The amendments also address offenses related to information/communication systems. Offenders impairing the functionality of the core systems of critical space infrastructure through illegitimate means (including unauthorized access, computer intrusion, and altering electronic records) may face imprisonment for one to seven years, along with fines of up to NT$10 million. For those committing these offenses with intent to harm national security or social stability, the penalties are three to ten years of imprisonment, along with fines of up to NT$50 million.

Strengthening protections for national security

These amendments to the Space Development Act demonstrate Taiwan’s commitment to fortifying national security and protecting critical space infrastructure. The consistent amendments and graded penalties make clear the government’s resolve to safeguard vital facilities and deter potential threats. By addressing both physical and virtual risks, Taiwan ensures uninterrupted space missions, while also sending the clear message that any attempts to create disruption or cause harm will be met with severe consequences.

On May 30, 2023, the Legislative Yuan passed proposed amendments to Articles 4, 35-1, and 35-2 of the Postal Act. These amendments strengthen protection of the postal information system, and reinforce the effectiveness of legal deterrence. In short, the amendments impose additional penalties for theft, destruction, and other illegal methods of jeopardizing the Core Postal Information and Communication System. Key points of the amendments follow:

1.　To be consistent with the definition of critical infrastructure under the Cyber Security Management Act, the Postal Act defines the Core Postal Information and Communication System in Article 4, Paragraph 20 as “the information and communication system for deposit and remittance services that is necessary for the continuous operation of the deposit and remittance services of Chunghwa Post Co., Ltd. or that requires a high level of protection.”

2.　For the purpose of deterring any person from disrupting the Core Postal Information and Communication System, Article 35-1 provides that “[a]ny person who endangers the normal operation of the Core Postal Information and Communication System by means of theft, destruction, or other illegal methods shall be sentenced to imprisonment for a term of not less than one year and not more than seven years, and may also be fined a maximum of NT$10 million.” In addition, the law stipulates that “[a]ny person who commits the aforesaid crime with the intent to endanger national security or social stability shall be sentenced to a term of imprisonment of not less than three years and not more than ten years, and may also be fined a maximum of NT$50 million.”

3.　Regarding cyber-attacks on the Core Postal Information and Communication System, Article 35-2 of the Postal Act stipulates that any person who endangers the normal operation of the Core Postal Information and Communication System by invading or interfering with the System, or by obtaining, deleting, or altering the System’s electromagnetic records, “shall be sentenced to imprisonment for a term not less than one year and not more than seven years, and may also be fined a maximum of NT$10 million”. In addition, “[a]ny person who commits any crime specified [in Article 35-2] with the intent to endanger national security or social stability shall be sentenced to imprisonment for a term of not less than three years and not more than ten years, and may also be fined a maximum of NT$50 million.”