Kaohsiung Redefines Its Role in Net Zero, Finance, and International Connectivity
July 15, 2025 03:00 Industrial & Commercial Times By Chen Bi-Fen
Kaohsiung is actively transforming itself, redefining its position in the areas of net-zero, finance, and international connectivity. Fan Chien-Te, Dean of the College of Sustainability at National Tsing Hua University (NTHU), is contributing his expertise in interdisciplinary technology regulations, international trends, and hands-on policy implementation to participate in the city’s new initiatives. His involvement aims to help guide Kaohsiung in developing a regionally competitive Asian asset management hub.
According to Fan, if Kaohsiung can achieve carbon credit quantification, issue green bonds, and establish related standards — while linking to international capital markets — it could attract investments from family offices, international hedge funds, and sovereign wealth funds. This would pave the way for a new model of sustainable capital circulation. The key to realizing this opportunity, he emphasized, lies in whether urban governance and financial innovation can be effectively integrated and coordinated.
Fan further proposed the “Three Golden Arrows” strategy for Kaohsiung:
- Carbon Credit Strategy: Designing a carbon credit and carbon fee system from the perspective of city governance, integrating urban infrastructure projects with carbon reduction goals.
- Green FinTech Zone: Combining the resources of the Financial Supervisory Commission (FSC) and the Kaohsiung City Government to establish a financial technology environment that meets international standards.
- Asset Management Tool Development: Creating tradable, traceable financial instruments through mechanisms such as carbon credits, green bonds, and the commoditization of green products, thereby driving industrial upgrades and boosting investment.
Kaohsiung currently accounts for 18% of Taiwan’s total carbon emissions, primarily from its heavy industry sector. This reality initially drew Fan’s involvement in city governance. During a government-led ISO administrative governance program promoted by Mayor Chen Chi-Mai, Fan recognized both the sustainability challenges and unique opportunities faced by a city dominated by heavy industry and port operations. Drawing on international urban experience, he noted that the areas most in need of governance often hold the highest market potential — as seen in cities like Zurich and Luxembourg, which successfully leveraged niche markets to connect with global capital flows.
Fan recommended that Kaohsiung focus on “ESG finance” as its niche market. He suggested the city follow Singapore’s example by combining carbon credit mechanisms with international financial resources. Fan advised the city government to apply to the FSC for a dedicated green finance project, aiming to make Kaohsiung the first city in Taiwan to systematically build a local green finance model. He stressed that green finance should not be seen as a standalone policy tool, but as a necessary strategy for addressing the challenges of high industrial carbon emissions, fiscal constraints, and evolving international regulations.
To generate meaningful transformation and financial product innovation, Fan argued that green finance must be rooted in urban governance, industrial structure, and policy pain points. Though from an academic background, Fan has gained the trust of the Kaohsiung City Government by proposing several practical projects. Behind these initiatives lies a system connecting carbon credits, green bonds, policy incentives, and international collaboration — forming a “green capital supply chain” that integrates infrastructure, urban management, and international market access.
“If we only aim to become an asset management hub, merely relying on central government declarations won’t work,” Fan stated sincerely. He believes that only by building a truly functional market ecosystem — covering carbon credit valuation, financial product structuring, regulatory adaptation, international capital attraction, and talent development — can an asset management hub avoid becoming an empty slogan.