Key Issues of Taiwan's Energy Transition

Becoming a Proactive State to Respond to the Systematic Risks of Climate Change

1. Everyone is talking about climate change, it can no longer be ignored.

2. The United Nations' proposed solution: global net-zero greenhouse gas emissions by 2050.

3. WBGU's new practical direction: using 'proactive states' to accelerate the decarbonization of the global energy system by 2050.

4. We need to become a 'proactive state' and provide greater opportunities for participation.

The Need to Shake Off the Shackles of Taiwan's High Carbon Energy Structure

There are five major characteristics of Taiwan's current energy situation: 

1. A major consumer of coal in the world 

2. The significant energy consumption in the industrial sector 

3. Cheap and unreasonable energy prices 

4. The high risks of nuclear power 

5. The poor results in Taiwan's promotion of renewable energy 

The Price of the Brown Economy—The Hidden Cost of Energy

The reality is that the continued use of fossil fuels is having a huge impact on our environment in the form of climate change, air pollution, the loss of biodiversity and other issues, however such environmental impacts are not reflected in the energy costs for the industries and the public. According to an International Monetary Fund (IMF) 2015 report, the air pollution, greenhouse effect, traffic congestion, etc., caused by Taiwan's fossil fuel use resulted in external costs of US$29 billion in 2015. Based on Taiwan's annual GDP of US$570 billion, the external costs of fossil fuels would amount to more than 5% of the overall GDP.

A Window of Opportunity for Energy transition

If Taiwan wants to embark on its energy transition pathway, there is a need to break through the political limitations, so that we would be able to use the whole set of governance mechanisms to consider the following 'windows of opportunity' :

1. An energy transition momentum driven by air pollution

2. Shaping the new electricity market

3. The emergence of multiple actors

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