Taiwan Agencies Back Blended Finance to Drive Net-Zero Shift

Taiwan is targeting net-zero emissions by 2050, a transition that will require substantial investment in sustainable infrastructure and emerging low-carbon technologies. Many such projects carry long payback periods or risks that conventional lenders and investors are reluctant to assume. Blended finance combines public or development funding with private capital, using guarantees, concessional funding or other risk-sharing arrangements to make projects more commercially viable.

At an international forum recently hosted by Mega Financial Holding, Financial Supervisory Commission Vice Chairperson Chuang Hsiu-Yuan and National Development Council Minister Yeh Chun-Hsien called for greater use of blended finance. The government plans to study international models and align any framework with Taiwan’s sustainability guidelines, aiming to use limited public resources to mobilize private investment in sustainable industries. Officials did not disclose a funding amount or implementation date.