Taiwan climate bill aims for end-2009 vote

TAIPEI (Reuters) - Legislators in Taiwan aim to pass an ambitious bill that would return the island's greenhouse gas emissions to pre-2000 levels by making factories clean up or pay, officials said on Tuesday.

The Greenhouse Reduction Act, which stalled after being introduced in parliament in February last year because of industry opposition, passed the first round of voting in December and is seen moving toward a final vote as early as late 2009.

The bill would also authorize Taiwan's first CO2 emissions trading system, eventually allowing factories that cannot cut back to buy credits locally or overseas, said Yang Ching-shi, an executive secretary with the island Environmental Protection Administration.

There was no set date for trading to start, Yang added.

The bill was introduced by the Democratic Progressive Party when it was in power and has won overall support from the ruling Nationalist Party, which won elections mid-last year.

President Ma Ying-jeou has said he wants Taiwan's annual carbon dioxide emissions to fall to 214 million tons by 2025 and reach half that by 2050, said Yang.

Without stronger industry regulation, Taiwan won't reach these aims despite various efforts, including stalling some key energy-related projects, Yang said.

Industry-intensive Taiwan imports most of its energy needs.

"We want to be a member of the global community, so we hope the bill goes through. We will work hard toward this goal, but the challenges are tough," Yang told Reuters in an interview.

In 2006, the International Energy Agency ranked Taiwan 22nd in the world for fuel-based carbon dioxide emissions at 270 million tons per annum. It was No. 16 in terms of per-capita emissions, higher than Japan and South Korea.

If the bill passes in its strictest form, the government would require factories and vehicles to upgrade emissions-reduction technologies, hitting cash-strapped small to mid-sized companies hardest. The government would offer expertise but not money for upgrades.

Some ruling Nationalist Party lawmakers want the bill softened to avoid further hurting the island's already recession-hit economy, a party caucus representative said.

U.N. Secretary-General Ban Ki-moon has urged that countries commit to new emissions cuts ahead of a U.N. climate treaty set to be signed in December as a successor to the Kyoto Protocol.

Taiwan is not formally part of these negotiations because of political pressure from China, which claims sovereignty over the self-ruled island, making any policies to fight climate change voluntary.

(Editing by David Fogarty)