An inclusive policy design for Article 6 implementation of Paris agreement -A Taiwan practice

The response to worldwide climate emergencies materialized in the enactment of the Paris Agreement with inclusive global efforts on net-zero emissions. Thus far, the rulebook for Article 6 of the Paris Agreement contains only broad principles, while infrastructure is still being developed, particularly for various purposes, including Other International Mitigation Purposes. This study reviews contemporary Nationally Determined Contributions (NDCs) policies in major and emerging economies, specifically those implementing carbon pricing and crediting practices. Given that the climate legislation of Taiwan achieved net-zero emissions, set a 2030 NDC target, and enforced carbon regulations, the Taiwan Crediting Integration Framework was introduced as a feasible research example, with an inclusive policy design, including existing carbon pricing instrument applications to carbon fees and potential emission trading systems to carbon credit, derived from the Paris Mechanisms. We found that with a 10 percent International Transferred Mitigation Outcomes offset to 2005 levels, the potential opportunity costs and marginal cost savings could benefit approximately US$ 737 M in 2030 when conducting the NDC target of Taiwan. The resulting carbon pricing governance in Taiwan will implement carbon pricing and be strictly bound to absolute emission reduction targets, ensuring no deviation from the net-zero pathway and preventing greenwashing.