Taiwan is aiming to attract over $1.5 billion in investments from insurance funds to bolster its green energy transition. Environment Minister Peng Chi-ming confirmed that a collaborative effort is underway to target investments in Energy Service Companies. President Lai Ching-te has increased carbon emissions reduction goals to 26-30% by 2030, highlighting Taiwan’s commitment to combat climate change despite its lack of U.N. membership.
Taiwan is seeking to secure over $1.5 billion in investments from insurance funds to finance its green energy transition, as stated by Environment Minister Peng Chi-ming. In light of the recent U.N. climate targets deadline missed by many countries, Taiwan is positioning itself as a proactive global actor in addressing climate challenges. Despite not being a U.N. member, the nation wishes to demonstrate its commitment to sustainable practices.
In line with its climate and carbon reduction objectives, President Lai Ching-te recently raised the carbon emissions reduction goal from 23-25% to an ambitious 26-30% by 2030, relative to 2005 levels. Peng highlighted the potential of Energy Service Companies (ESCOs), which specialize in energy-saving initiatives, as attractive investment opportunities. A working group involving the environment ministry, the economy ministry, and Taiwan’s Financial Supervisory Commission has been established to facilitate these investments.
The initial phase anticipates an investment of T$10 billion (approximately $305 million), with plans to increase to T$50 billion ($1.52 billion) in subsequent phases. Peng remarked that ESCOs provide stable, long-term returns, making them suitable targets for the insurance sector. Taiwan is transitioning away from coal-fired power stations, focusing on liquefied natural gas, and investing in solar and wind energy projects.
Peng also noted the increasing severity of climate-related challenges Taiwan faces, including extreme heat waves, stronger typhoons, and severe droughts. As Taiwan recently experienced its hottest year in recorded history, and with the significant drought in 2021, he emphasized the urgency of addressing these environmental threats. “For countries at our latitude, drought is a real danger,” he stated, underscoring the need for resilience against potentially worsening conditions.
In conclusion, Taiwan is diligently working to enhance its green energy initiatives through substantial investments from insurance funds. With an ambitious carbon reduction target set for 2030, the government is strategically collaborating with various ministries to support sustainable energy practices. Environment Minister Peng Chi-ming emphasizes the necessity of addressing climate change while adapting to the intensifying environmental challenges faced by the island.
Original Source: wmbdradio.com
