What is "Carbon Credit"?

Simply put, it is the right of an organization to emit carbon dioxide. There are roughly three types of acquisition methods: 1. Government-licensed quotas; 2. International voluntary market; 3. The effect of reducing carbon emissions. Either way, it must be certified. The unit of measurement of carbon rights obtained by the organization is per ton of carbon dioxide equivalent (tCO2e), which can be exchanged or traded.

 There is currently no carbon trading mechanism in Taiwan, and the third way to obtain carbon rights is to implement a reduction project. Get carbon rights. Since the government announced that carbon fees will be levied in 2023, the carbon rights obtained will be available for exchange at that time, but cannot be traded internationally.

 The first two are different ways to obtain carbon rights internationally: the first is to control the total amount of carbon emissions. When the country establishes a carbon neutrality goal, it will formulate the allowable emissions of each industry - that is, carbon rights. In fact, carbon rights are also bargaining chips. If they are not used up, they can be sold to the big carbon emitters in the country. Large carbon emitters can also go to the international voluntary market to buy carbon rights from other countries. The nature of this carbon right is similar to that of Taiwan. It means that the certified carbon reduction effect, as long as it is certified by an international mechanism such as VCS (Verified Carbon Standard), can obtain carbon rights and can be traded internationally. The first company in Taiwan to obtain international carbon certification is Zhenglong Paper, which obtained it through VCS in 2008.