The Taiwan Monthly
ESG
Together for Sustainability, United for Communities – TWSE launches the “Taiwan Nature-Based Carbon Sink Co-Prosperity Initiative”
The Taiwan Stock Exchange (TWSE) today (May 27) launched the “Taiwan Nature-Based Carbon Sink Co-Prosperity Initiative”, with participation from the National Development Council, Financial Supervisory Commission, Ministry of Environment, and Ministry of Agriculture. In alignment with Taiwan’s national net-zero policy, the TWSE is joining hands with key government agencies to promote local nature-based carbon sinks, biodiversity conservation, and community co-prosperity—demonstrating its firm commitment to leading listed companies on the path toward sustainability.
TWSE Chairman Sherman Lin stated in his remarks that in response to the growing global focus on climate change, natural capital, and biodiversity, the TWSE has initiated the "Taiwan Nature-Based Carbon Sink Co-Prosperity Initiative" with pilot projects in Yilan and Yunlin. These projects incorporate forest and soil carbon sink development, ecological surveys, community participation, and local revitalization. The goal is to provide listed companies with demonstrative examples of nature-based carbon solutions while promoting corporate sustainability responsibilities.
Deputy Minister Kao Hsien Kuei of the National Development Council emphasized that this initiative marks a key milestone in Taiwan’s carbon credit system development. It not only contributes to achieving national net-zero goals but also responds to the Council’s “Six Sector Net-Zero Flagship Programs.” She further noted that achieving Taiwan’s sustainability vision requires public-private collaboration, international alignment, community engagement, and local revitalization efforts.
Deputy Chairperson Chen Yen Liang of the Financial Supervisory Commission highlighted that the financial sector plays a vital role in driving green transition. Through the "Green Finance Action Plan for Transition," the Commission will leverage “green” and “innovation” as twin engines to guide companies in building resilient green brands, jointly advancing a low-carbon and sustainable future for Taiwan’s economy, industries, and society.
In line with emerging trends under the IFRS Sustainability Disclosure Standards, sustainability-related financial reporting will increasingly cover climate and nature issues. By leveraging capital markets, companies can create shared value with communities and ecosystems while accelerating industrial green transformation. Leading global enterprises such as Microsoft, Meta, and Google have already committed to the Symbiosis Coalition, pledging to procure a significant amount of carbon removal credits by 2030—highlighting the critical role of nature-based solutions. As many Taiwanese listed companies are part of international supply chains, this trend merits close attention. In addition, the TWSE plans to collaborate with the British Standards Institution (BSI) for third-party verification of its projects, thereby enhancing domestic verification capacity and injecting new momentum into Taiwan’s carbon market.
The TWSE noted that this initiative not only expands natural carbon sinks but also aligns with the internationally recognized Climate, Community & Biodiversity (CCB) Standards. In light of challenges faced by Taiwan’s private forest lands—such as aging landowners and limited management resources—the initiative introduces incentives including ecological stewardship and carbon trading mechanisms to increase landowners’ willingness to sustainably manage their forests. Thinned timber will be transformed into locally sourced forest products, fostering local employment, industrial transition, and sustainable use of natural resources.
The TWSE is working closely with academic institutions, local communities, and Indigenous groups to conduct ecological assessments in line with the principles of the Taskforce on Nature-related Financial Disclosures (TNFD). By integrating local revitalization efforts and collaborating with local agricultural and marketing cooperatives, the initiative aims to create a sustainable model that balances economic growth with social and environmental value through public-private partnerships.
Having long guided companies toward sustainability, the TWSE now takes a direct step forward through this initiative—demonstrating its commitment to action by fostering cross-sector collaboration and deepening engagement with local governments, agriculture and forestry systems, and the corporate sector. The TWSE sincerely invites more enterprises to join this nature-based sustainability movement. Together, we can craft a uniquely Taiwanese solution—where sustainability begins in the forest, takes root in the land, and flourishes through climate action, green transition, and ecological resilience for a net-zero future.
For further information, please contact Mr. Yu at 1248@twse.com.tw.