The UK and Taiwan co-hosted the 6th UK-Taiwan Energy Dialogue on 21 November 2024. The Dialogue is a crucial platform for bilateral cooperation on energy and climate issues.
The Dialogue featured a session on energy security, followed by deep dives into the offshore wind sector and supporting mechanisms to sustain renewable energy development amid global inflationary pressures and supply chain risks.
Opening remarks were delivered by John Dennis, Representative at the British Office Taipei, and LIEN Ching-Chung, Taiwan’s Vice Minister of Economic Affairs. The Dialogue was co-chaired by Julie Scott, Head of Energy Diplomacy at the joint Foreign, Commonwealth and Development Office and Department for Energy Security and Net Zero ’s International Energy Unit, and YU Cheng-Wei, Director General at the Energy Administration of the Ministry of Economic Affairs.
John Dennis, Representative at the British Office Taipei said:
The UK and Taiwan share a vision of a sustainable future, and there is much we can learn from one another. Our bilateral relationship is in an exciting stage of growth. In the coming months we will progress our Enhanced Trade Partnership arrangements, which offer opportunities to further deepen our engagement on energy and net zero.
Julie Scott, Head of Energy Diplomacy, said:
With our climate becoming more unstable, the risk of compounding crises is getting larger. And so, to make sustained progress against our climate goals we must invest in our understanding of these interlocking systems as well as in our international relationships. Today’s Dialogue is an excellent example of this. Our frank conversations about the opportunities and challenges in deploying renewables stand us in good stead for the year of cooperation ahead. I look forward to fruitful engagement on these topics.
LIEN Ching-Chang, Vice Minister of Economic Affairs, said:
The UK has been an important partner for Taiwan in the field of renewable energy. Taiwan and the UK share a common vision for advancing green energy and achieving carbon reductions. Taiwan is fully committed to advancing its energy transition policies to accelerate the achievement of our 2050 net-zero target. Through this Energy Dialogue platform established between the UK and Taiwan, I look forward to closer exchanges and enhanced bilateral cooperation on our mutual commitment.
YU Cheng-Wei, Director General of the Energy Administration, said:
These exchanges of expertise have been very helpful in building the renewable energy partnership between Taiwan and the UK. We are also looking forward to working together with the UK on offshore wind and other critical issues in the future. In this case, while moving towards net-zero goals, Taiwan and the United Kingdom will be able to create win-win opportunities and our shared vision for both that is resilient, stable, and flourishing.
Shyam Desai, Head of the Economic Section at the British Office Taipei, presented on energy security. The session charted the increased attention on energy security following the energy price shock resulting from Russia’s invasion of Ukraine, and noted recent developments in Taiwan’s energy security, including a sharp increase in electricity demand on the back of the AI boom. The item also covered some of the interventions Taiwan is seeking to make in response to these challenges, including diversification of energy imports and investments in upgraded infrastructure. Both sides recognised the importance of continuing to engage on this topic, and agreed to explore cooperation on accelerating a just energy transition while maintaining energy security.
The next session focused on offshore wind policy. Presenters from the Department for Energy Security and Net Zero and the Department of Business and Trade detailed the UK’s use of Contracts for Difference to incentivise investment in renewable energy. They also updated on the results and lessons learned from the UK’s 5th and 6th auction rounds, and shared a forward look at the offshore wind sector in the UK, including the implementation of new policies such as Great British Energy and Clean Industry Bonus, Taiwan’s Energy Administration described the challenges they have experienced in their own third auction round, and policy responses, including the recently announced relaxation of the Industrial Relevance Program (IRP).
The final session covered the financing of offshore wind projects. UK Export Finance described the ways their support can unlock offshore wind financing, and shared case studies on four projects they’ve supported in Taiwan over the past five years, with a total of £910 million in project finance guarantees. Taiwan’s National Credit Guarantee Administration presented an update on the National Credit Guarantee Mechanism, demonstrating Taiwan’s ongoing efforts to progress renewable energy developments by financing jointly through Taiwanese authorities and financial institutes.
The UK concluded by encouraging greater collaboration at the intersection of climate policy and economic policy, especially as we look to progress the UK-Taiwan Enhanced Trade Partnership in the coming years. The UK also highlighted upcoming work by the British Office Taipei on Emissions Trading Schemes, Carbon Border Adjustment Mechanisms and Carbon Capture, Usage and Storage.
The Dialogue closed with the UK and Taiwan recognising that only by deepening international cooperation and our understanding of the global challenges will we be able to sustain progress against our climate goals.
