97 MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE Climate Change Response Act 2023 Ministry of En- vironment Outlines Taiwan’s green- house gas net-zero goals for 2050 Regulates carbon capture, utilization, and storage Supports development of negative carbon tech- nologies Legal foundation for carbon neutrality Encourages innovation in car- bon reduction tech Energy Adminis- tration Act 2019 Energy Admin- istration Manages and regulates energy sources Promotes energy effici- ency and saving techno- logies Emphasizes public parti- cipation in energy conser- vation Framework for energy policy formulation Drives energy transformation through efficient systems and public engagement Electricity Act 2017 Ministry of Eco- nomic Affairs Provides structure for elec- tricity development Facilitates transition to re- newable energy systems Enables renewable energy in- tegration into the grid Supports clean energy infrastructure Renewable Ener- gy Development Act 2009 Ministry of Eco- nomic Affairs Promotes energy diversi- fication Reduces greenhouse gas emissions Supports sustainable de- velopment Lays early groundwork for re- newable energy promotion Enhances long-term environ- mental sustainability efforts Key objectives Legislation Year Administrator Contribution to net-zero goals for financing these projects. The main capital sources for offshore wind projects in Taiwan are export credit agencies, international financial institutions, local Taiwanese banks, institutional investors, and government investment and subsidies. Six aspects of financing bear consideration. First is large-scale project financing—a growing trend evident in recent and future offshore wind projects. Global interest rates are much higher than pre-COVID levels, but this does not seem to be a deterring factor in project financing sizes. Taiwan’s capacity targets have increased project sizes, requiring larger financing levels. Second, multisource financing is becoming a large component of offshore wind projects. The sheer increase in project size necessitates consortia of institutional players for financing. For example, the Hai Long Wind Offshore Project secured NT$118B in long-term financing from a group of 16 international and commercial banks (Hai Long Offshore Wind, 2023). These larger pools of capital with multiple participants reduce individual risks for financiers but also create challenges for smooth transactions as participants must negotiate terms before committing capital. Third, increasing domestic bank participation is diverting concentration away from the historically prominent international banks. Domestic banks have a greater pulse on the domestic offshore wind market and can provide customized financing solutions, but historically they lacked the capacity and risk appetite for backing large-scale wind projects. The maturing wind sector and the popularization of multisource financing have increased domestic bank participation. Fourth, there is a movement away from government subsidies to a market approach. Previously, the government relied on feed-in tariffs (FiTs) to promote renewable energy adoption. A FiT is a policy mechanism where renewable energy producers are Table 2 Taiwanese legislation and objectives Sources: Ministry of Economic Affairs, 2023a, 2023b, 2025; Ministry of Environment, 2023.
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