Unlocking Sustainable Finance for All: Taipei Exchange’s SCAN Initiative
As the global community accelerates its transition towards a net-zero future, the Taipei Exchange (TPEx) is at the forefront - integrating sustainability into capital markets. Through the Sustainable Capital Access Network (SCAN), launched in 2022, TPEx is unlocking access to sustainable finance, empowering governments, corporates and SMEs to leverage capital market resources in advancing their net-zero transition while fostering innovation and collaboration across financial markets.
Our Vision: Building an Inclusive Sustainable Finance Platform
Taiwan has an ambitious 2050 net-zero emissions target, establishing a clear national pathway toward climate neutrality. Achieving this goal requires government leadership and the mobilisation of capital through financial markets to support transition investments across all sectors.
As the sole, dedicated bond market exchange in Taiwan, TPEx has developed comprehensive infrastructure for fixed-income markets complemented by extensive experience in nurturing SMEs and collaborating worldwide. Building on this foundation, TPEx aims to create an inclusive, sustainable finance platform that channels capital toward projects delivering both environmental and social impact, in line with international best practices. To turn this vision into reality, TPEx has taken two key actions to support the nation’s sustainable transition.
First, we established the Sustainable Bond Market in 2017, creating a dedicated funding channel for the entire economy. Starting with green bonds, we expanded to include social bonds, sustainability bonds and sustainability-linked bonds (SLBs), forming a robust and credible ecosystem that supports development.
Second, in 2022, we launched the Sustainable Capital Access Network (SCAN) to empower all issuers, from government agencies to SMEs, to leverage capital-market resources in advancing their transition toward net zero. By integrating market expertise and institutional support, SCAN connects ambition with implementation and ensures that the benefits of sustainable finance are shared across the economy.
Over the years, Taiwan’s sustainable bond market has grown steadily. By September 2025, the TPEx Sustainable Bond Market included more than 230 outstanding bonds, totaling around USD23.5 billion. In terms of market composition, green bonds account for 70 percent, followed by sustainability bonds (18 percent), social bonds (11 percent) and SLBs (1 percent).
Why SCAN Matters: Bridging the Gaps in Market Access
While Taiwan’s sustainable bond market continues to expand, several challenges remain. First, issuance has been concentrated among large corporations and financial institutions. Looking back to 2021, the top ten issuers, including TSMC, the Republic of Chile, and Deutsche Bank, accounted for nearly 70 percent of total issuance, highlighting the need to diversify the issuer base.
Beyond concentration, SMEs also face structural barriers. Representing nearly 98 percent of all businesses in Taiwan, they often operate with relatively small paid-in capital and have low awareness of sustainable financing opportunities. As a result, high issuance costs and limited financing channels continue to hinder their access to the sustainable bond market.
Finally, participation from domestic governments remains low. While this group represents about one-quarter of sustainable bond issuers globally, Taiwan’s public-sector involvement is still in the early stages, reducing the demonstration effect that could inspire wider private-sector engagement.
How SCAN Works: Turning Vision into Impact
SCAN serves as an integrated platform that brings together market resources and institutional expertise to bridge gaps in access to sustainable finance, particularly for government agencies, SMEs and other potential issuers. It operates through three key functions:
- Scanning Potential Issuers: TPEx engages with government agencies and listed companies to identify potential issuers and assess the feasibility of sustainable bond issuance. This step fosters early-stage dialogue, enabling issuers to explore appropriate funding opportunities and align financing plans with sustainability goals.
- Screening Eligible Projects: TPEx works with its partners to guide issuers in identifying eligible green and social projects, ensuring that project selection is consistent with best market practices. Through this process, SCAN enhances the credibility of qualified projects plus helps ensure that proceeds are allocated to impactful and measurable outcomes.
- Navigating International Alignment: Before a bond applies for listing, TPEx implements the Sustainable Bond Accreditation Mechanism (SBAM) to uphold transparency and market integrity. By providing tailor-made guidance throughout the preparation and review process, SCAN ensures that bond quality aligns with international standards and strengthens investor confidence.
Furthermore, to encourage broader participation, TPEx provides subsidies for external review costs, taking concrete action to support sustainable bond issuance and lower entry barriers. Through SCAN, TPEx has developed a replicable model that can be applied across sectors, enabling both public and private issuers to access sustainable finance in an inclusive and efficient way.
From Progress to Prospects: Extending Impact Across the Economy:
Since its launch, SCAN has delivered meaningful progress across multiple fronts. Between 2017 and 2024, the TPEx Sustainable Bond Market experienced remarkable growth, with issuance expanding at a compound annual growth rate of 33 percent and setting new records each year, even amid global market headwinds in 2022.
Figure - TPEx Sustainable Bond Issuance and Issuer Composition
The issuer landscape has also evolved. Domestic corporates surged from 7 percent to 44 percent in 2022, reflecting rising awareness and broader market participation. At the same time, around 24 percent of Taiwan’s sustainable bonds are dual-listed on major international exchanges, underscoring TPEx’s growing international visibility. This recognition extends beyond cross-border participation. The CBI cited TPEx as a “high-quality sustainable bond exchange” in its 2024 market report, acknowledging TPEx’s efforts in fostering a transparent, credible and internationally aligned sustainable bond market.
Government and SME participation has also expanded notably. In 2024, two major city governments issued sustainable bonds to finance public transportation modernisation, followed by another city government in 2025 that raised funds for clean transport and affordable housing. Meanwhile, several corporates successfully entered the market through sustainable convertible or exchangeable bonds, financial instruments commonly used by SMEs in Taiwan for flexible capital raising.
By September 2025, 11 sustainable municipal bonds have been issued with a total value of USD523 million, while sustainable convertible or exchangeable bond issuances amount to approximately USD413 million across five tranches.
Looking ahead, momentum continues to build. On the global front, a new financial policy has been introduced to ease regulations for dual-listed bonds, supporting broader issuer participation, enhancing international cooperation and further expanding Taiwan’s global market reach.
Domestically, the pipeline of government and SME issuers continues to grow. Taiwan’s central government is preparing its first sustainable bond in 2026, while four additional city governments are assessing potential issuances. At the same time, an increasing number of SMEs are considering sustainable bonds as a viable instrument to finance their transition and sustainability goals.
We expect this ripple effect to continue, empowering SCAN to support governments in extending sustainable finance into broader public domains such as education, healthcare and infrastructure, while assisting corporates in advancing their sustainability transition and strengthening their financing and investment strategies. Through SCAN, TPEx will continue to broaden access, augment transparency, and foster inclusiveness, making sustainable finance a shared pathway for all.