Taipei Exchange

In order to promote the transition to net-zero building in Taiwan, the Architecture and Building Research Institute, Ministry of the Interior held the ‘Net Zero Building and Building Energy-Efficiency Label Information Panel’ on 7 May 2024, which was co-organised by the Taiwan Architecture & Building Center, the National Housing and Urban Regeneration Center, the Taipei Exchange, and the CPA Associations Taiwan, to collaborate in responding to the net-zero building initiative in order to achieve Taiwan's net-zero emissions target of 2050.

According to the Taipei Exchange, the construction of net-zero buildings requires a large amount of investment and a long financing period, so it is very suitable to take advantage of the characteristics of fixed interest rates and long maturities of bonds to issue green bonds for raising the necessary funds. With more than 20% of the proceeds raised by green bonds being used for green building investment programmes, issuers can leverage on the market's past success by issuing green bonds to lock in the medium- and long-term cost of net-zero construction and diversify their sustainable funding channels.

Green bonds can be issued if the green building projects meet international green building standards, such as the EU Taxonomy or the Climate Bond Taxonomy, or if they have obtained the Taiwan Green Building Label(Silver or above) and the Building Energy-Efficiency Label (Level 2 or above), in accordance with the Taiwan Sustainable Taxonomy. In addition, those who have obtained the Taiwan Green Building Candidate Certificate could be awarded a corresponding volume incentive based on the grade of the Candidate Certificate.

Furthermore, in order to take the lead in demonstrating and implementing the net-zero building policy, the Architectural Research Institute of the Ministry of the Interior has already promulgated that publicly-owned new buildings will be subject to building energy efficiency evaluation in phases and that in the future, such as social housing, should comply with the Building Energy Efficiency Level 1 or nearly zero carbon buildings. The National Housing and Urban Regeneration Center has already adopted near-zero energy-consumption building technologies in the construction of social housing. In order to achieve the goal of building 250,000 social housing units in the future, the Taipei Exchnage will assist the National Housing and Urban Regeneration Center in discussing the issuance of green bonds or other sustainable bonds to raise funds to diversify its financing channels, increase financing flexibility and manage interest rate risks. Besides reducing the financial burden of financing interest, realising housing justice and moving towards a net-zero transition, it also achieves the win-win effect of expanding the size of the green building and sustainable development bond market.

As of the end of April 2024, 127 green bonds have been issued, with a total issuance amount of NT$393.8 billion. It is hoped that more governmental organisations and enterprises will issue green bonds to achieve the goal of energy saving and carbon reduction in buildings. For more information on the Green Bond mechanism, please refer to the Taipei Exchange Sustainable Bond Information Hub (www.tpex.org.tw/web/bond/sustainability).