Advances and challenges of implementing carbon offset mechanism for a low carbon economy: The Taiwanese experience

In Taiwan, a significant amount of greenhouse gas emissions occur as a result of anthropogenic activities and rapid urbanization. In order to comply with the ‘Greenhouse Gas Reduction and Management Act’ and the “Nationally Determined Contribution” to abide by Paris Agreement, the Taiwanese Environmental Protection Administration has devised a framework for a carbon offset mechanism before a cap and trade scheme is introduced. This paper gives a snapshot of the Taiwanese context in implementing offset projects using a combination of a strengths-weaknesses-opportunities-threats (SWOT) analysis and multi-criteria decision making (MCDM) for the development of domestic carbon offset projects. An analytical hierarchy process (AHP) and a technique for order preference by similarity to ideal solution (TOPSIS) are used for quantitative analysis to identify the most feasible strategic alternatives in the SWOT matrix. A comparison analysis is conducted to compare the framework and governance of the Taiwanese carbon offset mechanism to a clean development mechanism (CDM). The results show that the weaknesses identify a potential alternative and the strengths and opportunities significantly overcome the threat. Therefore, the priority strategies include the establishment of an integrated authority, the development of more governmental agencies and an improvement in the economy. Finally, a sound cap and trade scheme, stakeholder involvement, public-private-people partnerships and goals that allow sustainable development are proposed. © 2019