TAIPEI (Taiwan News) — High carbon prices should not be feared, former German Federal Environment Agency official Jurgen Landgrebe said, citing Europe’s success in cutting emissions while sustaining strong economic growth.
Speaking at the ESG Sustainable Taiwan International Summit, Landgrebe said carbon markets are a central tool for cutting emissions, per Business Today. He added they also play a critical role in strengthening energy resilience.
Drawing on the EU’s emissions trading system, he said carbon prices have risen to roughly NT$3,000 (US$94) per tonne. Despite this, emissions fell 51% over two decades while GDP expanded 63%.
Amid global instability, we must build resilient energy systems while achieving carbon neutrality, Landgrebe said. He cited disruptions from conflicts including those involving Iran and Russia.
He said Taiwan has made notable progress in recent years. Renewable energy now accounts for about 12% of its power mix, a sharp improvement from a decade ago.
Landgrebe spent more than 30 years at Germany’s Federal Environment Agency and led ETS implementation from 2004. He continues to advise Taiwan’s Ministry of Environment after retiring in 2024.
He outlined four pillars of energy resilience: stable power supply, robust grid infrastructure, energy storage, and demand management. Each plays a complementary role in ensuring long-term system stability.
On the supply side, he said expanding renewable energy and phasing out fossil fuels are essential. Emerging options such as green hydrogen and sustainable aviation fuel also warrant further development.
He stressed the importance of smart grids and storage systems. These are needed to manage the intermittency of solar and wind power as renewable penetration rises.
On the demand side, he called for improved energy efficiency across industries, transport, and households. This includes wider adoption of electric vehicles and high-efficiency technologies.
Carbon pricing, he said, is the most effective mechanism for driving emissions reductions. The EU ETS, launched in 2005, covers major sectors such as power, industry, and aviation under a declining emissions cap.
Landgrebe said carbon markets work because they give companies flexibility. Firms can either reduce emissions or purchase allowances depending on cost and strategy.
These incentives have accelerated renewable adoption in Germany. Green energy now accounts for 55% of power generation, 19% of heating and cooling, and 8% of transport energy use.
Taiwan plans to begin collecting carbon fees this year and launch a pilot ETS in 2027. Landgrebe described these steps as critical and called carbon pricing a driver of innovation.
