Research and analysis

Taiwan: UK engagement in climate change and energy policy

Published 8 October 2014

This research and analysis was withdrawn on

This publication was archived on 4 July 2016

This article is no longer current. Please refer to Overseas Business Risk - Taiwan

This publication was archived on 4 July 2016

This article is no longer current. Please refer to Overseas Business Risk - Taiwan

Summary

Professor Dame Julia King, UKTI’s low carbon Business Ambassador and a Non-Executive Director of the Green Investment Bank, visited Taiwan on 29-30 September. The visit caps a busy month for UK climate diplomacy which has cemented our position as Taiwan’s partner of choice in this area. Thanks to our relationships with key stakeholders, both commercial and inward investment opportunities abound.

Detail

Taiwan is one of the top 20 global carbon emitters and even higher on a per capita basis. A bill aimed at setting binding emission cuts has been stuck in the Legislative Yuan for seven years. The unresolved post-Fukushima debate on the use of nuclear energy has been particularly problematic: the administration halted work on the 97%-complete construction of Taiwan’s 4th nuclear power plant in April and little progress has been made since. Around 70% of the population support phasing out nuclear over the next decade but the alternatives are more expensive and could impact Taiwan’s already high carbon emissions.

We have seen high level visits in both directions this month. In early September, the Head of Taiwan’s Environmental Protection Administration WEI Kuo-yen visited the UK where he met Climate Minister Amber Rudd, Lord Deben and Sir David King, FCO Special Representative for Climate Change. As a result of this visit, there are now plans to apply what was learnt about HMG’s climate and energy policy governance structures in the restructuring of the Environmental Protection Administration (EPA).

Professor Dame Julia King’s visit this week arose from a request by the local administration to speak at a forum on Green Energy and Finance. Her speeches both at a lunch hosted by the British Chamber of Commerce as well as at the forum attracted considerable coverage in the local Chinese and English language dailies. Her speech on ‘Growing a Green Economy’ will be read out on a weekly radio programme broadcast by Dr Eugene Chien, who heads up an influential green NGO.

On 9 September, an Opinion Editorial which I signed jointly with the Heads of the local German and French Offices as part of the Joint Action Day on Climate Change called for Taiwan to take ambitious action to reduce carbon emissions. Green NGOs called our article an unprecedented action, and a few days later the EPA issued their own response explaining how they were seeking to learn from European best practice.

Whatever decisions Taiwan takes on its energy policy, commercial opportunities abound for the UK. On 2-6 November UKTI will bring a Renewable Energy Mission to Taipei to vie for opportunities as Taiwan expands investment in clean energy. And a UKTI Nuclear Mission from 16-18 November will build upon last year’s commercial MoU between Taipower and the UK’s Nuclear Decommissioning Agency (NDA).

During Dame Julia’s visit, some of the insurance companies and pension funds attending the Green Energy Finance Forum expressed an interest in investing in the Green Investment Bank given the high returns relative to local options. While there are regulatory hurdles to overcome to turn this interest into actual investment, we are well placed to take advantage. We held a seminar on the potential for investment into wider UK infrastructure opportunities, including energy, on 7 October.

Comment

A common theme in our discussions with business, the administration and civil society groups has been that the UK is seen as a world leader on climate change and in providing low-carbon solutions. This is in large part due to our local engagement as well as our progressive and forward-leaning policies at home.

Disclaimer

The purpose of the FCO Country Update(s) for Business (”the Report”) prepared by UK Trade & Investment (UKTI) is to provide information and related comment to help recipients form their own judgments about making business decisions as to whether to invest or operate in a particular country. The Report’s contents were believed (at the time that the Report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by UKTI or its parent Departments (the Foreign and Commonwealth Office (FCO) and the Department for Business, Innovation and Skills (BIS)) as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Report’s contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other form of financial instrument. No liability is accepted by UKTI, the FCO or BIS for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with the Report.