EPA Deputy Minister Shen Chih-Hsiu, Hsinchu Science Park Bureau (HSPB) Director Chen Li-Chu, and the Deputy Director-general of the Hsinchu County Government Environmental Protection Bureau (EPB) Hsiao Hung-chieh jointly signed the contract for the old vehicle replacement matching service on 25 May 2023. They announced that starting from 1 June, the "One-Stop Scrap Vehicle Recycling" website will provide new matching options. The public will be able to receive more cash when replacing old vehicles and contribute to carbon and air pollution reduction at the same time.
The EPA launched the "Old Vehicle Replacement 2.0" program in January this year, and there have been new developments since then, with the HSPB enhancing its acquisition of carbon reduction and air pollution reduction benefits. Starting from 1 June, citizens who scrap their old vehicles can see more favorable replacement plans on the "One-Stop Scrap Vehicle Recycling" website. The subsidy for replacing old gasoline-powered cars with electric ones, which was originally provided by the EPA at NT$15,000 per vehicle, was increased to NT$16,000 after the HSPB became involved. For cars registered in Hsinchu County, Hsinchu City and Miaoli County, the amount has been further increased to NT$19,100. In addition, the Hsinchu County EPB will continue to acquire the carbon reduction benefits from replacing old motorcycles with electric ones, providing a subsidy of NT$2,000 per vehicle, following the same scheme as last year.
Deputy Minister Shen Chih-Hsiu stated that accelerating the electrification of vehicles is an important strategy to achieve the "2050 Net-zero Transition." In Taiwan, the transportation sector accounts for 13% of greenhouse gas emissions. Through the expansion of matching the vehicle type with carbon emission and air pollution reduction benefits on this matching service platform, developers (enterprises) can fulfill the carbon reduction commitments stated in their environmental impact assessments. In addition to participating in environmental protection efforts to reduce air pollution and carbon emissions, individuals can also save money, creating a win-win situation.
On 25 May, the EPA signed matching service contracts with both the HSPB and the Hsinchu County EPB. The HSPB proposed a plan to acquire "greenhouse gas" offsets, with an estimated acquisition of offsets from the replacement of 26,400 gasoline-powered small passenger cars and trucks within two years, representing a carbon reduction benefit of approximately 420,000 metric tons. Additionally, in the Hsinchu-Miaoli air quality zone, the HSPB proposed a plan to acquire "air pollutant" offsets, with an estimated acquisition of offsets from the replacement of 19,578 gasoline-powered motorcycles, small passenger cars and trucks, buses and heavy trucks within three years. The reduction benefits for air pollutants are estimated to be 34 metric tons/year of volatile organic compounds and approximately 75 metric tons/year of nitrogen oxides.
The offsets that the HSPB planned to purchase this time were mainly to meet the needs of the Baoshan Phase 1 and Phase 2 developments. In the future, if there are new development plans in other park areas, it will continue to make purchases. The HSPB stated that the development of the park not only considers the needs of enterprises but also takes into account local features and environmental sustainability in its planning. This includes efforts in conserving and reusing resources such as water and electricity, as well as total amount control of greenhouse gas and air pollution emissions. Participating in offset mechanisms is not only about offsetting development activities but also providing economic incentives to the public. The Hsinchu County EPB pointed out that the Hsinchu County Government is actively participating in policy actions, allocating budgets and encouraging early participation of enterprises with needs, aiming for a win-win situation among the government, enterprises, and the public.
To accelerate the replacement of old vehicles, the EPA began subsidizing vehicle owners at the beginning of 2023 to replace vehicles that are over ten years old with electric or low-emission vehicles. Depending on the carbon reduction and air pollution reduction benefits and the type of new vehicle being purchased, different amounts of subsidies or incentives are provided. As of 20 May, a total of 796 old small passenger cars and trucks were replaced with new ones under the subsidy program. Additionally, since the launch of the matching platform on 10 June 2022, the HSPB and the Hsinchu County EPB have proposed the acquisition of carbon reduction benefits from the replacement of old motorcycles. As of 20 May 2023, the HSPB had 24,200 matches for motorcycle replacement, while as of the end of 2022, the Hsinchu County EPB had 279 matches. Together, they have obtained a carbon reduction benefit of approximately 56,000 metric tons.
Excerpt from Major Environmental Policies, May 2023
- Ministry of Environment