Monthly News Review: June 2023
Latest law amendments set a milestone in renewable energy development
Why You Should Know
As renewable energy development becomes an essential strategy for countries worldwide to achieve Net-Zero Emissions, the Taiwanese government passed amendments to the Renewable Energy Development Act in 2023 to expedite its policies’ effectiveness. The amendments hold significant implications for both solar and geothermal power generation sectors in future development.
The News
To strengthen the legal foundation of the Pathway to Net-Zero Emissions in 2050, the Executive Yuan approved the proposed amendments to the Renewable Energy Development Act prepared by the Ministry of Economic Affairs last year (2022). After approximately six months of negotiation procedures, the bill finally passed the legislature on May 29, 2023.
The key focus of these amendments includes a provision requiring certain new buildings or renovations to install rooftop solar panels and a brand new chapter for geothermal power that would specify the administrative procedures for development. For example, in order to safeguard the local hot spring industry and protect indigenous peoples’ rights, developers are required to submit an impact analysis report and implement the consultation procedures with indigenous communities.
Additionally, minor adjustments to offshore wind power, hydroelectric power, and biomass power generation are also included to relax restrictions and stimulate innovation. For example, it loosens restrictions for small-scale hydroelectric power installations, expands areas for offshore wind power installations, and encourages facilities to maximize the benefit of waste heat utilization.
Our View
Serving as a crucial legislative framework to regulate and control renewable energy development, the Renewable Energy Development Act was enacted in 2009 and underwent its first major revision in 2019. In the 2019 amendment, the government set a long-term target of reaching 27GW by 2025 and introduced the solar feed-in tariff (FIT) system and renewable energy certificate system, etc., to gradually transition towards a liberalized market and strengthen domestic renewable energy generation capacity.
However, after nearly two years of implementation, the government realized that the development had not been as ideal as expected, including low power generation capacity and significant social and environmental impacts resulting from site selection and installation of power generation facilities. Therefore, the government initiated a new round of amendments to the legislation in 2022.
Among various amended provisions, we believe that the one related to requiring certain newly constructed or renovated buildings to install rooftop solar panels is a significant milestone for the future. As mentioned in the previous article, rooftop solar panels hold great potential when installed in cities since they could benefit the people, government, and environment. For example, people can reutilize the rooftop space and earn additional revenue; the government may increase power generation capacity and enhance public acceptance of solar power development. Moreover, rooftop solar panels have a lower environmental impact than ground-mounted and floating solar panels. Therefore, it is crucial to strengthen their installation in densely populated areas.
Finally, we want to urge the government to expedite the legislative process for subsidiary laws. We look forward to more precise rules and regulations by incorporating the opinions of different stakeholders in the future.
Further Reading
Amendments to the Mining Act: Balancing Economic Development and Environmental Sustainability
Why You Should Know
The Mining Act, enacted in 1930, contains outdated provisions regarding land use procedures that are no longer suitable for present conditions. The act was finally updated to address those concerns after more than 80 years.
As mining areas usually overlap with ecologically sensitive areas and indigenous traditional territories, the mines are not only an economic driver, their existence also provokes worry about irreparable damages to the environment and agitate power relations in the surrounding regions.
A comprehensive and appropriate mining law package that regulates mining procedures and assesses impacts of mining on environment and indigenous rights plays a decisive role in securing a sustainable future for the mining industry and its neighboring community. This is why we need to pay attention to the Mining Act.
The News
Near midnight on 26th of May, Legislative Yuan in Taiwan passed significant amendments to the Mining Act which has long been criticized for its partial privileges toward quarry business and disregard for indigenous people’s rights.
The primary revisions include most contentious articles that have fueled conflicts between the mining industry and local residents in the past years. For instance, Article 47 that allows quarry businesses to access land without permission of land owners and Article 31 that gives quarry businesses convenience to easily extend mineral rights have now been removed and overhauled to align with principles of justice and sustainability.
Furthermore, the amendments also reinforce the spirit of indigenous and environmental justice. They request that quarries that obtained mineral rights in earlier years must conduct a makeup consultation to indigenous communities for seeking approval. Similar retrospective provisions regarding environmental impact assessment are also added for large-scale quarries to follow.
Citizen of the Earth, an environmental group in Taiwan persistently advocating for mining reforms, responded positively to the passage of this bill and heralded it as a “new chapter for Taiwan’s mining industry.”
Our View
The process of amending the Mining Act had been frustrated and repeatedly delayed over the past decade. However, significant progress has been made this time, representing a milestone in balancing economic development and environmental protection for sustainability.
Notable revisions in this amendment include the requirement for mining sites to have closure plans and exit mechanisms, the implementation of regular environmental risk assessments and economic benefit evaluations, and the inclusion of indigenous consultation. We believe these measures should also be applied to other renewable energy developments when pursuing a Net Zero pathway, ensuring a just transition that avoids sacrificing vulnerable groups.
Further steps are still needed to make the reform more complete. In the future, we should keep an eye on the formulation of subsidiary laws and administrative regulations related to the Mining Act. For example, the design of guidelines for “indigenous consultation and consent procedures” and their alignment with the spirit of the Indigenous Basic Law remains to be seen. It is essential to engage in more discussions involving stakeholders to ensure the implementation aligns with the core principles of the law.
Further Reading
Editors: Sophia Chueh and Chao-Hsiang Chang
Proofreader: Shun-Te Wang
