The Taiwan Carbon Exchange (TCX) is set to market carbon credits generated by a blue carbon project in Myanmar, marking the first units available on the TCX from a scheme developed under the US-based registry Verra’s Verified Carbon Standard (VCS).
Launch of Blue Carbon Credits on TCX
On June 13, TCX will formally launch credits from the Myanmar mangrove restoration project, allowing Taiwanese companies to place orders. This initiative supports Taiwan’s net-zero goals by providing nature-based carbon credits. The exchange plans to introduce units from another land-based nature development by the end of the month.
The Myanmar Mangrove Restoration Project
The project, titled "Reforestation and Restoration of Degraded Mangrove Lands, Sustainable Livelihood, and Community Development" (VCS1764), is the only mangrove project in Myanmar currently issued with credits under the VCS. Developed by the Worldview International Foundation, VCS1764 is located in Ayeyarwaddy province and was registered in June 2017. It is expected to deliver 184,006 carbon credits annually, according to Verra registry data.
TCX's Role in Carbon Credit Trading
The TCX facilitates the trade of both domestic and international carbon credits. In May, TCX signed a memorandum of understanding with Verra to develop, issue, and use carbon credits. This follows a similar agreement with the Switzerland-based registry Gold Standard in August 2023.
Established by the Taiwan Stock Exchange and the National Development Fund Management Committee, TCX was created following the announcement of the Climate Change Response Act in February 2023. The Act sets regulations to help Taiwan achieve net zero emissions by 2050. TCX first sold international credits in December 2023.
Significance of Blue Carbon Credits
Blue carbon projects, like the Myanmar mangrove restoration initiative, play a vital role in climate mitigation. Mangroves sequester significant amounts of carbon dioxide, enhance biodiversity, and support sustainable livelihoods for local communities. The availability of these credits on TCX underscores the growing importance of nature-based solutions in global carbon markets.
Conclusion
The launch of Verra-certified blue carbon credits from the Myanmar mangrove project on the Taiwan Carbon Exchange represents a significant step towards enhancing Taiwan's carbon trading options and achieving its net-zero emissions goals. By integrating nature-based solutions, TCX is fostering sustainable development and contributing to global efforts to combat climate change.
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