In response to the current challenges that are holding back Taiwan's energy transition, our research team developed the following climate and energy transition policy mixes, with the aim of achieving comprehensive transition in Taiwan: 

1. Adopt Participatory Governance Innovation 

2. Internalize External Costs 

3. Develop a Sustainable Power Market 

4. Strengthen Local Energy Governance 

5. Implement the Industrial Energy Efficiency First Principle 

6. Accelerate Green Capital Flows

The key to participatory governance is the principle of inclusiveness, focusing on improving people's willingness to participate and enhancing their background knowledge on relevant issues, creating the impetus for the public to proactively participate in decision-making, as well as the integration of cross-ministerial departments and the innovation of participatory mechanisms, in order to overcome at the most fundamental level the path dependency that humans have over-relied on in our technological and economic development, in our regulatory and policy mechanisms, as well as in our attitudes and habitual behaviors in our daily lives.

In the past, local governments were not empowered with the responsibilities and powers to oversee local energy development, and energy governance was therefore seen as additional responsibilities. Due to the lack of practical experience in the field, local governments are therefore confronted with the following challenges...

Taiwan's electricity market is in need of two types of reforms: on the one hand, the traditional state-owned integrated power industry needs to be transformed to an environment that promotes new competition in the industry, while on the other, new market regulations need to be developed with immediacy, in response to the development trends of low carbonization, decentralization, electrification, digitalization, and the democratization of the power system. On the legal front, even though regulations such as the 'Greenhouse Gas Reduction and Management Act', the 'Electricity Act', and the 'Renewable Energy Development Act' have been adopted and amended...

Taiwan relies on imports for 98% of its energy needs, and the industrial sector has consistently been the largest source of energy consumption and carbon emissions. In 2018, the energy consumption of the industrial sector accounted for 32% of the total energy consumption in Taiwan. When including for the industrial use of fossil raw materials, the industrial energy consumption accounted for more than 50% of the total national consumption, in the broad sense.

In order to undergo energy transition, it is necessary for the general public to understand the impact of traditional energy systems on the society and environment, and to highlight the necessity of structural adjustments. However, in the promotion of relevant policies, the following bottlenecks have been met...

The impact of climate change has attracted the attention of the financial and investment sectors. However, either from the perspective of risk aversion or environmental sustainability, the "greening" of finance should not be only about strengthening "green financial investments" but would also require more proactive actions. In particular, while the government has promoted "green finance" in terms of "green energy investments" and "green bonds", it has neither sought to improve the climate risk disclosure of investment projects nor strengthen investment reforms to achieve the true "greening of finance".