Taiwan's first government-recognized carbon emissions trading platform is slowly becoming a reality, the Environment Protection Administration (EPA) said Tuesday, although it did not give a definite timetable. EPA Minister Stephen Shen said carbon trading is becoming a global trend, as the international community is seeking various ways to reduce greenhouse gases. As an industrial country, Taiwan must not be absent from this movement, he said. Emissions trading is a mechanism to encourage companies or countries to go green by using economic incentives. Also known as 'cap and trade,' under the scheme, participants are allowed a certain quota of emissions. When a big polluter maxes out on its allotted level, it can purchase the unused quota from another firm. According to the EPA, the establishment of a domestic carbon trading platform will be divided into three phases but so far, only phase one has been completed, with the next phase estimated to be completed only after December next year. Phase one includes an online registry through which the buyer and the vendor can find out more information about each other. The second phase will allow the registered companies to bid on allotted quotas. The third phase will allow participants to buy quotas beforehand if it foresees the need for a bigger allotment in the future, said Shen. The EPA said the platform will contain information on the emission levels of over 300 domestic factories and plants. It will also be the second platform of its kind to be established in Asia following one in Japan. Earlier that same day, six car makers, including BMW, Ford, Honda Taiwan, China Motor Corp., Hyundai and Mercedes-Benz signed an agreement with the EPA promising to import low-emission cars for domestic consumers. The goal of the agreement is to cut the country's carbon dioxide emissions by 10 percent to 15 percent by 2015. Premier Wu Den-yih recently applauded the country's carbon reduction efforts, saying that overall, Taiwan emitted 5.14 million metric tons of greenhouse gases less than last year. Taiwan is not a signatory to the Kyoto Pact, a binding international agreement under the United Nations to fight climate change, but despite this, the government earlier this year set a goal of cutting back carbon emissions by 84 million metric tons by 2020. It is hoped that in 10 years, the country's emissions will be the same as 2005 levels. 