Photo: View of Downtown Taipei, by Olimpia Kot
What is happening?
Taiwan received a low ranking in the Climate Change Performance Index (CCPI) released on Wednesday, November 20, 2024. The country moved up just one spot compared to last year, placing 60th out of 64 ranked entities. The low ranking was attributed to shortcomings in energy use, greenhouse gas emissions, renewable energy development, and climate policy. As with previous years, Taiwan’s Ministry of Environment dismissed the results as biased. Minister Chi-ming Peng (彭啟明) acknowledged that while the CCPI offers some reference value, it is insufficient for complete evaluation and falls short of a comprehensive measure of Taiwan’s progress. Although the Ministry emphasized that Taiwan is trying to transition to green energy, there are specific challenges to achieving its ambitious goals amid systemic and infrastructural obstacles.
What is the broader picture?
Taiwan has announced an ambitious plan to achieve net-zero emissions by 2050. However, CCPI local experts have raised concerns over needing more short-term targets to achieve this goal. In 2023, 83.09% of Taiwan’s electricity generation was derived from thermal sources: 39.54% from natural gas, 42.21% from coal, and 1.34% from oil. Nuclear power contributed 6.31%, while renewable energy sources accounted for 9.52%. The government’s energy transition strategy aims to raise the share of renewable energy to 20% by 2025, with an ambitious increase to 60–70% by 2050. The renewable energy portfolio includes investments in solar, wind, geothermal, and ocean energy sources. Despite supporting these developments, experts have criticized the lack of detailed plans to phase out oil and gas, arguing that such measures are critical for achieving true sustainability.
While offshore wind farms are pivotal to Taiwan’s transition to a low-carbon economy, as the country phases out nuclear power and coal-fired plants and wind energy is set to become the primary alternative energy source, wind energy developers face significant obstacles, particularly concerning disputes with local fisheries associations over fishing grounds and compensations. Developers also contend with broader concerns, including the political risks tied to Taiwan’s geopolitical situation, which can deter foreign investment. According to the government’s plans, however, Taiwan’s Round 3 offshore wind farms are expected to connect to the grid between 2026 and 2035. This capacity could meet nearly 40% of Taiwan’s peak electricity demand.
Why does it matter?
The Climate Change Response Act followed the net-zero targets by 2050 in January 2023. This makes the target legally binding. These ambitious goals have introduced tensions and challenges, reflecting broader issues in Taiwan’s energy transition, particularly regarding the practicalities of policy implementation and the complexities of infrastructure expansion. This is further complicated by Taiwan’s economic trajectory, particularly in high-demand sectors like artificial intelligence, semiconductors, and electric vehicles. The government estimates an average annual electricity demand growth of 2.5% from 2024 to 2028, with the power requirements of AI technologies projected to rise significantly—from 240 megawatts (MW) in 2023 to 2.24 gigawatts (GW) by 2028.
These projections highlight the urgency of addressing infrastructural and policy challenges to meet future energy demands sustainably. In doing so, it is crucial to maintain a delicate balance between achieving Taiwan’s energy transition goals and respecting the rights and livelihoods of affected communities. Indigenous land rights, which host a range of renewable energy sources, are particularly significant in this context. While developing renewable energy can offer substantial environmental and economic benefits, it often intersects with Indigenous land rights, cultural heritage, and traditional ecological practices. Therefore, efforts to mediate and ensure fair compensation agreements, alongside transparent stakeholder engagement, will be vital to overcoming these challenges.
