Taiwan eyeing insurance funds to help with green transition

Written by Adam Cadle

12/02/2025

Taiwan is aiming to get more than $1.5bn in investment from insurance funds to help finance the island’s green energy transition as part of its climate change and carbon reduction goals, Environment Minister Peng Chi-ming has said.

Taiwan is not a member of the UN because of the objections of China which views the island as its own territory and therefore is not a signatory to the Paris climate agreement.

Last month, Taiwan President Lai Ching-te announced a more ambitious carbon missions reduction goal to reduce greenhouse gas emissions by 26% to 30% by 2030 compared to 2005 levels. The previous target was 23% to 25%.

Speaking to Reuters this week, Chi-ming said that ESCOs, or Energy Service Companies that design build and arrange financing for energy-saving schemes, were an attractive investment. The environment ministry, along with the economy minister and Taiwan’s financial regulator, the Financial Supervisory Commission, have formed a working group to channel funds from the insurance industry into ESCOs.

The first phase of the investment is planned at T$10bn ($304.92m), expanding to T$50bn ($1.52bn) in the second phase.

"ESCOs can provide long-term stable returns and are suitable for the insurance industry to invest in," he added, without giving a timeframe.

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