TAIPEI (Taiwan News) — Taiwan opened a carbon trading company on Monday (Aug. 7) in the first such move aimed at realizing carbon neutrality by 2050.

The Taiwan Carbon Solution Exchange is headquartered in Kaohsiung but with its data exchange center established in Taipei. It is funded by the Taiwan Stock Exchange (TWSE) and the National Development Council (NDC).

A hub of steel and petrochemical industries, the harbor city of Kaohsiung will be tasked with driving the net-zero transformation of Taiwan, said President Tsai Ing-wen (蔡英文) during her address.

The carbon exchange will provide services for carbon credit trading and other emission offset mechanisms for domestic businesses. It will also introduce cross-border carbon transaction services that enlist accredited international organizations, according to the Presidential Office.

The initiative is in line with the Tsai administration’s objective to go carbon neutral by 2050, a roadmap published last year and implemented in accordance with the Climate Change Response Act (氣候變遷因應法). The regulation entered into effect in February.

The effort to push net-zero transition is expected to create economic output worth NT$5.9 trillion (US$186 billion) and 550,000 jobs. Companies are likely to be spurred to reduce their carbon footprints and invest in the development of low-carbon technology, a boost to the green economy, Tsai said.