Nuclear power cannot be regarded as green energy, so carbon reduction still requires renewable energy, energy efficiency, or carbon capture and storage technology, Environmental Protection Administration (EPA) Minister Chang Tzi-chin (張子敬) told a question-and-answer session at the Legislative Yuan in Taipei on Thursday.
This is the mainstream view worldwide, and green finance, or ESG — environmental, social and governance — investments, which have surged over the past few years, prohibit investing in nuclear power plant projects.
For example, MSCI, the world’s most reputable compiler of investment indices, generates ESG lists by first excluding firms in the nuclear power, arms, gambling and pornography industries. Only then does it look at whether a firm’s performance indicators meet sustainability requirements. Many funds based on MSCI’s ESG indices do not buy the stocks or bonds of companies in those industries.
Although most power plants in other countries are privately owned, many are publicly traded, but ESG funds exclude companies that generate revenue from nuclear power.
Over the past few years, the EU has been promoting its Green Deal, a transformation of the bloc’s energy sector, and has adopted the EU Taxonomy, a transparency tool that lists economic activities that meet sustainability standards.
Businesses that meet the standards can issue green bonds, which enjoy lower borrowing costs and fewer administrative procedures. Funds that claim to be ESG must disclose how sustainable the companies in their portfolios truly are.
The EU Taxonomy excludes nuclear power generation, and nuclear power cannot be used to account for carbon reduction efficiency.
The EU’s logic is that carbon reduction cannot be achieved to the detriment of other environmental objectives, such as eliminating radioactive waste or safeguarding biodiversity. Sustainable carbon reduction must “do no significant harm” to the environment.
By this logic, nuclear power is a major hazard in Taiwan, a densely populated country situated in an earthquake zone.
The proposed third liquefied natural gas terminal off the coast of Datan Borough (大潭) in Taoyuan’s Guanyin District (觀音) is another example of this.
Infrastructure for the project has been moved farther out to sea, far from the coastline, and the shipping lane is not to be dredged, minimizing damage to an algal reef.
In other words, if the terminal is part of the fight against air pollution, it must comply with the principle of not causing significant harm to other aspects of the environment.
The referendums that are to be held next month have either become highly politicized or distort the issue of nuclear power.
Perhaps the logic behind today’s ESG trend in global finance could help the public to better understand the issue and make more informed decisions.
Honda Chen is an associate research fellow at the Taiwan Academy of Banking and Finance.
Translated by Perry Svensson
The Chinese Communist Party (CCP) has long been expansionist and contemptuous of international law. Under Chinese President Xi Jinping (習近平), the CCP regime has become more despotic, coercive and punitive. As part of its strategy to annex Taiwan, Beijing has sought to erase the island democracy’s international identity by bribing countries to sever diplomatic ties with Taipei. One by one, China has peeled away Taiwan’s remaining diplomatic partners, leaving just 12 countries (mostly small developing states) and the Vatican recognizing Taiwan as a sovereign nation. Taiwan’s formal international space has shrunk dramatically. Yet even as Beijing has scored diplomatic successes, its overreach
After 37 US lawmakers wrote to express concern over legislators’ stalling of critical budgets, Legislative Speaker Han Kuo-yu (韓國瑜) pledged to make the Executive Yuan’s proposed NT$1.25 trillion (US$39.7 billion) special defense budget a top priority for legislative review. On Tuesday, it was finally listed on the legislator’s plenary agenda for Friday next week. The special defense budget was proposed by President William Lai’s (賴清德) administration in November last year to enhance the nation’s defense capabilities against external threats from China. However, the legislature, dominated by the opposition Chinese Nationalist Party (KMT) and Taiwan People’s Party (TPP), repeatedly blocked its review. The
In her article in Foreign Affairs, “A Perfect Storm for Taiwan in 2026?,” Yun Sun (孫韻), director of the China program at the Stimson Center in Washington, said that the US has grown indifferent to Taiwan, contending that, since it has long been the fear of US intervention — and the Chinese People’s Liberation Army’s (PLA) inability to prevail against US forces — that has deterred China from using force against Taiwan, this perceived indifference from the US could lead China to conclude that a window of opportunity for a Taiwan invasion has opened this year. Most notably, she observes that
The Chinese Nationalist Party (KMT) said on Monday that it would be announcing its mayoral nominees for New Taipei City, Yilan County and Chiayi City on March 11, after which it would begin talks with the Taiwan People’s Party (TPP) to field joint opposition candidates. The KMT would likely support Deputy Taipei Mayor Lee Shu-chuan (李四川) as its candidate for New Taipei City. The TPP is fielding its chairman, Huang Kuo-chang (黃國昌), for New Taipei City mayor, after Huang had officially announced his candidacy in December last year. Speaking in a radio program, Huang was asked whether he would join Lee’s
RSS